Shamrock to Reddy Ice shareholders: Vote no on GSO offer

By Lisa Kerner

Charlotte, N.C., Aug. 8 - Reddy Ice Holdings, Inc. investor Shamrock Capital Advisors, Inc. said it believes the company is worth "substantially more" than the $31.25 per share offered by affiliates of GSO Capital Partners LP.

Shamrock, in an open letter, urged fellow shareholders to vote against the offer. The letter was included as part of a schedule 13D filing with the Securities and Exchange Commission.

Instead, Shamrock wants shareholders to consider its proposal for a 15% stock buyback at $33.00 per share, maintaining that the $31.25-per-share offer by GSO was "at the wrong time" and at "the wrong price."

Specifically, Shamrock asked shareholders to consider if there is a potential conflict of interest in the GSO transaction and to examine management's motives for pursuing the deal.

"We find it curious that within less than one year following the initial public offering of Reddy and just days following its May 2006 secondary offering management was seeking strategic alternatives. It appears that management urgently wants to take Reddy private again. Who can blame them? They made millions of dollars during their prior stint when they were running Reddy as a private company," the filing stated.

Shamrock also believes that the board and special committee "failed to exercise effective oversight of management's actions" and did not provide proper leadership and direction.

The investor reported owning 1,401,542 shares, or roughly 6.4% of the Dallas ice maker's outstanding stock.

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