UPDATE: Clinton Group Calls for Changes at Stillwater Mining, Says Co. Should Look to Sell Altar Asset
Clinton Group, Inc. announced today that it has sent a letter to the board of directors of Stillwater Mining Company (NYSE: SWC) demanding changes to the strategy, operations and management of the Company. Clinton Group owns a significant stake in the Company.
The letter critiques the current management team and Board for a series of strategic missteps and bad acquisitions; operating with a bloated cost structure and marketing budget; and for issuing a high cost-of-capital convertible bond in October. The letter goes on to demand the Board take seven steps to improve the cash flow and operations of the business.
The letter also expresses the Clinton Group's view that the Company is undervalued and that taking the steps outlined in the letter can help stockholders realize fair value for the stock. The Clinton Group's valuation analysis concludes that fair value is approximately $21-23 per share.
The complete text of the letter sent by Clinton Group to the board of directors of Stillwater Mining is attached.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.