Reddy Ice investor ups stake in company to 6.43%, opposes GSO transaction

By Lisa Kerner

Charlotte, N.C., July 24 - Reddy Ice Holdings, Inc. investors led by Shamrock Activist Value Fund, LP acquired 225,300 shares of the company's stock since June 20 at an average price of $31.00 per share, according to a schedule 13D filing with the Securities and Exchange Commission. Reddy Ice stock (NYSE: FRZ) closed at $30.97 on July 23.

The reporting persons own 1,401,542 shares, or 6.43%, of the Dallas ice making company. On July 19, Shamrock reported a 5.4% stake in Reddy Ice. On May 17, the investor beneficially owned 932,032 shares, or 4.2%, of Reddy Ice's outstanding stock.

As previously reported, Shamrock Advisors, Inc. said it was "alarmed" that Reddy Ice seemed to be attempting to minimize shareholder opposition to the proposed acquisition of the company by GSO Capital Partners LP for some $1.1 billion.The investor is opposed to the $35.35-per-share offer price and urged Reddy Ice to instead begin a self-tender for some 15% of its outstanding shares at $33.00 per share by incurring $110 million of new debt.

Shamrock said it was invited by GSO to participate in the buyout group if it dropped its opposition to the proposal.

Reddy Ice said it is strongly committed to the GSO deal and believes it to be in the best interests of the company's stockholders, a company statement said.

The merger agreement gives Reddy Ice a 45-day go-shop period to solicit competing proposals. The company said it has been "actively soliciting interest."

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