Mario Gabelli, GAMCO, & Tredegar Corporation (TG)’s Poison Pill

Mario Gabelli‘s fund GAMCO Investors, in a newly amended filing with the Securities and Exchange Commission has provided an update regarding its negotiations with the management of Tredegar Corporation (NYSE:TG). The fund sent a letter to General Counsel and Corporate Secretary of the company, Mr. A. Brent King, in which it proposes that the shareholders of the company should vote on the Shareholders Rights plan installed by the Board earlier.

“GAMCO is proposing a resolution that urges the shareholders to vote to request that the Board of Directors redeem the rights issued pursuant to the Rights Agreement, dated as of June 30, 1999, and thereafter amended and restated on June 30, 2009 and November 18, 2013,” the letter stated.

The latest amendment to the Shareholders Rights plan, also known as the Poison Pill, among other things involves raising the threshold for launching the plan to 20% from previously stated 15%. Also, Tredegar Corporation (NYSE:TG)’ shareholders that own at least 10% of the common stock, received the right to request a special meeting to vote to  cancel the Revised Rights Agreement.

Mario Gabelli via GAMCO, Gabelli Funds, and Teton Advisors holds a total of 14.12% of Tredegar’s common stock. The position involves 4.6 million shares. Out of the total position, GAMCO owns over 3.8 million shares, equal to 11.84% of the common stock. Earlier in October, GAMCO sent another letter to the company, mentioning that the fund would consider proposing a vote regarding the poison pill policy. The fund also stated that they “remain committed to shareholder value creation”

Among other shareholders of Tredegar, Cliff Asness’s Aqr Capital Management holds a stake which contains almost 94,200 shares, with a reported value of over $2.4 million.  Jim Simons’s Renaissance Technologies reported, in its latest 13F, closing the position in Tredegar, previously owning 22,300 shares.

Disclosure: none

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