Sandell Asset Management further criticizes TPC Group's going-private transaction

October 5th, 2012
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Contributed by: Hedge Fund Solutions LLC
On October 2nd, Sandell Asset Management issued a press release and a second white paper criticizing TPC Group Inc’s (TPCG) proposed $40/share going-private transaction, stating that the sale process was flawed, tainted by self-dealing and based upon a valuation opinion that was biased by overly-negative projections for the business.

Activist Holding info
Shares1,109,816
% Outstanding7.10%
Cost basis38.49
Company info
Share Price40.67
Revenue$3B
Market Cap$649M
Enterprise Value$877M
Net Cash-$213M
EBITDA$92M
52 wk. range16.27 - 47.61
EV/EBITDA9.6

Sandell Asset Management reiterated their intention to vote against the sale.

NOTE: On Monday October 8 TPC said it received a buyout proposal from Innospec Inc. (IOSP.O) worth $44 to $46/share.

The Catalyst Equity Research Report previously covered TPCG in our September 7 report, highlighting Sandell’s 7.1% “active” ownership stake in TPCG and their opposition to the company’s $40/share going-private transaction.


Hedge Fund Solutions (HFS) is a Philadelphia-based investment research and strategy consulting firm focused on providing substantive solutions on issues relating to shareholder activism. The Firm has an unparalleled depth of knowledge on activist investing and has become the trusted advisers to numerous institutional investors, CEOs and board members worldwide. For more information on Hedge Fund Solutions or to sign-up for their Catalyst Equity Research Reports, please click here.
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Sandell Asset Management
Related People: Thomas
Related Entities: Castlerigg Global Select; Castlerigg International Master; Castlerigg Master Investments; SAMC
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles; Investment Management and Hedge Fund Firm Mergers, Acquisitions, Spin-offs and Transactions; Hedge Fund Resources and Featured Partner News


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