Reddy Ice responds to stockholder's objections, reiterates commitment to GSO merger

By Lisa Kerner

Charlotte, N.C., July 18 - Reddy Ice Holdings, Inc.'s board of directors responded to a July 16 letter from shareholder Shamrock Capital Advisors Inc. opposing the company's proposed acquisition by GSO Capital Partners LP for some $1.1 billion.

Shamrock maintained that the $35.35-per-share offer was "at the wrong time" and at "the wrong price." Instead, Shamrock urged Reddy Ice to begin a self-tender for some 15% of its outstanding shares at $33.00 per share by incurring $110 million of new debt.

"The assumptions and projections used as a basis for the leveraged recapitalization strategy proposed by Shamrock were neither provided nor endorsed by the company and do not reflect the company's view," a Reddy Ice statement said.

Reddy Ice intends to provide details regarding its decision to proceed with its merger agreement with GSO Capital Partners LP in a Securities and Exchange Commission filing.

"The special committee remains strongly committed to the transaction with GSO and believes it is in the best interests of the company's stockholders," according to the Reddy Ice statement. "While the special committee believes the transaction with GSO provides an attractive valuation to stockholders, the merger agreement permits the company to solicit competing proposals for a period of 45 days following the execution of the merger agreement."

Reddy Ice said it has been "actively soliciting interest."

The company announced on July 2 that it agreed to be acquired by funds managed by GSO for $31.25 per share in a transaction worth $1.1 billion.

Shamrock reported a 5.4% stake in the Dallas ice making company.

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