Shamrock questions Reddy Ice's merger with GSO

By Lisa Kerner

Charlotte, N.C., July 19 - Reddy Ice Holdings, Inc. investor Shamrock Advisors, Inc. said it was "alarmed that the company appears to be abandoning its duty to maximize value for all shareholders by attempting to minimize shareholder opposition to the GSO transaction." Shamrock's remarks were included in a letter to Reddy's board.

According to the investor, Shamrock was invited by GSO to participate in the buyout group if it dropped its opposition to the proposal, and at least one other Reddy Ice shareholder was offered a similar deal.

"It is disturbing that select Reddy Ice shareholders are being offered an opportunity to participate in the GSO buyout of Reddy Ice in exchange for their support. We have been concerned about the process that led to the GSO transaction, and those concerns have been heightened by these recent events," Shamrock wrote.

As previously reported, Shamrock opposes the $35.35-per-share offer by GSO Capital Partners LP. Instead, Shamrock urges Reddy to begin a self-tender for some 15% of its outstanding shares at $33 per share by incurring $110 million of new debt.

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

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