Major shareholder Ramius asks Lamson & Sessions to sell PVC pipe business

By Lisa Kerner

Charlotte, N.C., Jan. 19 - After it upped its stake to 9% in The Lamson & Sessions Co., the company's largest shareholder Ramius Capital Group, LLC fired off a letter to the company's board urging it to consider a sale of Lamson's PVC pipe business.

The letter, sent through Ramius subsidiary Admiral Advisors, LLC, states that Lamson's shares are "significantly undervalued primarily due to the impact of the PVC pipe business," according to an amended schedule 13D filed with the Securities and Exchange Commission. Ramius expects the sale to generate $70 million or more in gross proceeds.

In the letter, Ramius executive managing director Jeffrey C. Smith cited the recent acquisition of PVC pipe market competitor PW Eagle by J-M Manufacturing Co., Inc. for $33.50 per share.

Ramius said it is also considering its own nominations to Lamson's board of directors at the company's upcoming annual meeting.

Ramius is a New York-based investment adviser.

Lamson is a Cleveland manufacturer of thermoplastic electrical, consumer, telecommunications and engineered sewer products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.