Ryerson
(NYSE:RYI) may finally be forced to face the music today after 9.6%
holder Harbinger Capital Management announced that they would be suing
the company for failing to hold its annual meeting. The activist hedge
fund had recently announced its own slate of directors when the company
suddenly cancelled their annual meeting to "review strategic
alternatives". Many shareholders are hoping that they can finally rid
the company of poor management and unlock shareholder value.
This
fight between Ryerson management and shareholders is nothing new.
Harbinger and other investors have been unhappy with Ryerson's
performance for some time and have been trying to change management or
perhaps find a private equity buyer willing to pay a premium for the
company. Ryerson management - realizing that they were in danger - have
delayed their annual meeting as long as possible while searching for a
buyer that would keep the current management in tact. This has proven
to be quite the challenge, however, as the company has not yet found a
buyer agreeing to such terms!
Now, Harbinger is trying to
finally force a day of reckoning for management. Deleware law states
that companies must hold their annual meeting no later than 13 months
after their last. While there are few exceptions, Harbinger announced
today that it is suing in hopes that they can force an annual meeting
within the next 45 days. The company's Chief Financial Officer said
that they are aware of the lawsuit and are consulting with their
lawyers. Whether or not we will finally see an annual meeting remains
to be seen, but this is definitely a situation to
keep an eye on in the meantime!
Related CompaniesReliance Steel & Aluminum (RS)Olympic Steel (ZEUS)A.M. Castle & Co. (CAS)