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Valueact Capital Cuts Stake in Dresser-Rand Group Inc. (DRC) To 2.6% From 6.6%

Valueact Capital, led by Jeffrey Ubben, has reduced its position in Dresser-Rand Group Inc. (NYSE:DRC). The fund has revealed, in a newly amended filing with the Securities and Exchange Commission, that it holds around 2 million shares of the company, representing 2.6% of the company’s common stock. According to the filing, the fund has sold around 3.0 million shares in multiple transactions. Previously, Valueact Capital reported a 6.6% stake in the company, containing around 5 million common shares.

VALUEACT CAPITAL

Dresser-Rand Group Inc. (NYSE:DRC) is a supplier of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. With a market cap of $4.90 billion, the company operates manufacturing facilities in the United States, France, United Kingdom, Spain, Germany, Norway, India, and Brazil.

For the first quarter of 2014, the company reported net income of $16.6 million, or $0.22 per diluted share, for the first quarter, compared to net income of $32.9 million, or $0.43 per diluted share for the first quarter 2013. In a press release, the company said that its net income and EPS for the first quarter were reduced by about $10.8 million and $0.14, respectively, as a result of the impact of the draft Spanish regulation. Dresser-Rand Group Inc. (NYSE:DRC) posted revenues for the first quarter of $699.1 million, down from $766.4 million for the same quarter of 2013.

Siemens AG is reportedly planning to acquire Dresser-Rand Group Inc. (NYSE:DRC), Bidness Etc reported last week, citing German business publication Manager Magazin.

The largest shareholders of the company, aside from Valueact Capital, include Iridian Asset Management, managed by David Cohen and Harold Levy, and Adage Capital Management, run by Phill Gross and Robert Atchinson, holding 4.88 million shares, and 1.34 million shares, respectively.

Shares of Dresser-Rand Group Inc. (NYSE:DRC) traded down by 4.20% to $64.07 on Wednesday. For the company’s stock, analysts have the consensus average target price of $62.38, and the consensus average recommendation is ‘Hold.’

Disclosure: none

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