O-N Minerals takes ?no position? regarding takeover offer

The parent company of Presque Isle County?s largest employer, Oglebay Norton (O-N), is in the cross hairs of a New York-based private-equity firm, which has offered O-N shareholders $31 per share in an attempt to secure all of the outstanding shares of the company?s common stock. Harbinger Capital Partners has made an unsolicited takeover offer of the minerals company. They own 18 percent of the miner of limestone and sand. The offer values Oglebay at $450 million.

An O-N press release issued August 13 states a ?special committee of its board of directors, after consulting with its independent financial and legal advisors, has determined to take no position at this time with respect to the unsolicited tender offer from Trident Acquisition Company, LLC.? Trident is a jointly owned subsidiary of Harbinger Capital Partners.

LAST WEEK, Mike Lundin, Oglebay Norton president and CEO, said, ?A special committee of Oglebay Norton?s board of directors together with its team of outside advisors, is conducting a robust strategic alternative process to maximize a level playing field for all parties, including Harbinger.? The company announced July 24 that the O-N board formed a special committee of independent directors to explore strategic alternatives to maximize shareholder value, including a possible sale or merger of the company. In a letter to the O-N board of directors July 3, Harbinger stated that it intended to nominate directors for election at this year?s annual meeting who, once elected, will explore any and all available strategic alternatives in order to maximize shareholder value.

HARBINGER CAPITAL Partners believe O-N?s announcement July 24, that its board of di

rectors will explore strategic alternatives was a reactive measure, and that the board may not be truly committed to taking any action to maximize shareholder value, particularly if it is detrimental to the position of current directors, the statement continued. Oglebay, a 150-year-old company long involved in Great Lakes shipping and iron ore, was forced into bankruptcy because of excessive debt taken on during prior management’s efforts to diversify the company into businesses with better growth prospects than lake shipping. They emerged from bankruptcy three years ago. O-N?s stock opened at $30.10 Tuesday.

The Great Lakes Division of O-N Minerals includes the Calcite Plant in Rogers City, as well as the operation in Cedarville.

Leave a Reply

Your email address will not be published.