December 03, 2008

Ryerson shareholders re elect the board

It is reported that Chicago based Ryerson Inc shareholders voted to re elect all 11 Ryerson directors nominated by the board paving the way for a vote on Ryerson's proposed USD 2 billion buyout by Platinum Equity Fund at a special meeting in October or November 2007.

Mr Neil Novich CEO of said "I would like to thank our stockholders for their continued support.

Mr Larry Clark MD of Harbinger Capital Partners one of the Harbinger funds said that "Today's vote ceased to be about who was best equipped to lead this company. It became about the need for certainty versus the desire for opportunity. If the Platinum Equity transaction is completed on its announced terms one quarter of a billion dollars of stockholder wealth will have been created. That's more value than the company created on its own over the previous eight years."

Harbinger Capital Partners started to agitate for change at Ryerson late last year and in January 2007 vowed to propose its own slate of board members. It has argued that Ryerson's lackluster financial and stock performance mandated new leadership. Faced with a rebellious large investor, Ryerson hired an investment bank to look for alternatives, including a sale, and postponed its shareholder meeting scheduled for May 2007. It said it contacted more than 50 potential buyers and met more than 30 times with suitors before agreeing to sell the company to an affiliate of Platinum Equity for USD 34.50 a share in cash with the investment firm backing its bid with a commitment letter from its bank.