Carl Icahn disclosed a stake in Manitowoc Company Inc (MTW) on his Schedule 13D filing with the Securities and Exchange Commission (SEC).
The stock price of the company surged more than 8% to $22.71 per share at the time of this writing around 11:26 A.M. in New York.
Icahn believed Manitowoc shares were undervalued
The activist investor indicated that he invested in Manitowoc Company because he believed its shares were undervalued. He also intends to discuss with the management regarding his proposal to split its Crane and Foodservices segment into two separate companies.
In addition, Icahn said he would also seek shareholder representation to the board of Manitowoc Company if necessary. The activist investor “have had no discussions” yet with the management or board of directors of the company as of December 28, 2014.
Furthermore, Icahn said he and his affiliate firms may acquire additional shares, debt, notes, instruments or other securities of Manitowoc Company from time to time or at any time. They might also dispose of any or all of their stake in the open market or engage in any hedging or similar transactions with respect to the securities.
Manitowoc Company – Details of the investment
Based on the filing, Icahn and his affiliates beneficially owned 7.7% stake or 10,532,660 shares of Manitowoc Company (including shares underlying call options).
Icahn and his affiliates reported that they purchased total of 6,040,029 shares of Manitowoc Company, American-style call options in the over the counter market. The call options have an expiration date on August 12, 2016.
In addition, they sold an aggregate of 6,040,029 shares, European-style put options in the over the counter market. The put options expire on the earlier of August 12, 2016, the same date when the call options are exercised.
Manitowoc Company is a multi-industry, capital goods manufactures. The company’s Cranes and Related Products segment provides engineered lifting equipment for the construction industry around the world. Its Foodservice segment manufactures commercial equipment for the restaurant, convenience store and hotel industry.
