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Vote on A.M. Castle ‘poison pill’ near

Keywords: Tags  A.M. Castle, Scott Stephens, poison pill, Jefferies, Nat Rudarakanchana


NEW YORK — A.M. Castle & Co.’s "poison pill" shareholder rights plan, designed to guard against unwanted mergers or acquisitions, is due for renewal or expiration in a board vote later this month, a top company executive said.

"The board will vote on that this month, to either extend it again or let it expire," A.M. Castle chief financial officer Scott F. Stephens told AMM on the sidelines of Jefferies LLC’s 10th Annual Global Industrials Conference in New York.

The scheme, designed to reduce the likelihood of a coercive takeover, is set to expire Aug. 30 after its existence in this form for a year, he said.

The board can redeem or remove the pill at any time, Stephens said. "There should be an announcement by the end of the month," he added.

As for continued or renewed interest from major shareholders or other companies for deals with A.M. Castle, Stephens remained noncommittal.

"There’s always reported to be interest in the markets that we’re in. ... The kind of products that we have a large position in, they’re highly specialized and we have a lot of scale there," he said.

"So I think that interest is generally always there, or (has always) been there. I don’t know that that’s changed," Stephens said. "But we don’t have any open dialogue with anyone at this point."

Los Angeles-based private investor Platinum Equity LLC previously showed interest in a potential acquisition of A.M. Castle, after which the Oak Brook, Ill.-based service center adopted its initial poison pill defense (amm.com, Aug. 31, 2012).


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