Tredegar Poison Pill Scenario Weighed By GAMCO Investors & Mario Gabelli

Tredegar poison pill: In an amended 13D with the SEC, Mario Gabelli’s GAMCO Investors just reported an 11.8% position in Tredegar Corporation (NYSE:TG). This marks a slight increase from the billionaire’s position last quarter, and they also attached a letter mentioning that they “remain committed to shareholder value creation,” and are neither for or against current management. Gabelli’s firm also says it will be “evaluating all options” including a proposal to be included in Tredegar’s upcoming proxy vote on the company’s poison pill policy.

Mario Gabelli

For the second quarter of the year, Tredegar posted a net income from continuing operations of $9.6 million, which is equal to $0.29 per share, and is higher than the $7.4 million results showed a year ago. The net sales of the company engaged in production of plastic films and aluminum extrusions amounted to $234.5 million, up from $215.9 million reported in the second quarter of 2013.

While GAMCO is the hedge fund with the largest stake in Tredegar, we should also mention some of Gabelli’s peers, whose funds also own shares of the company. Cliff Asness’s Aqr Capital Management holds a stake which contains almost 43,400 shares, while  Jim Simons’s Renaissance Technologies owns 22,300 shares, as reported in the latest round of 13F filings.

Below you can download the letter sent from GAMCO to A. Brent King, the general counsel and corporate secretary of  Tredegar Corporation:

GAMCO’s Letter to Tredegar Corporation

Disclosure: none

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