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Harbinger Capital Partners nominates seven directors to replace majority of Ryerson's board
By Lisa Kerner
Charlotte, N.C., Jan. 2 - Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund, LP said they plan to elect seven independent directors to replace the majority of Ryerson Inc.'s existing board of directors at the company's 2007 annual meeting of shareholders.
Harbinger owns a 9.7% stake in Ryerson and detailed its intention in writing to Ryerson's board, according to a news release. In addition, the New York-based investment firm is filing stockholder proposals to deter the current board members from trying to block the election of the Harbinger nominees.
"This company has consistently underperformed and there is a need for a significant change at the board level," Harbinger Capital managing director Larry Clark said in the release.
Specifically, Harbinger is concerned that Ryerson's board and senior management have demonstrated a lack of focus on profitability and management of inventory. And Harbinger said the current board and senior management team have failed to adequately execute Ryerson's strategy.
Since 1996, Ryerson's operating margins have averaged 3.4%, less than half of the metals service center and processor composite average of 8.0%, according to the release.
Harbinger's nominees include Keith E. Butler, owner of BCS Placements, LLC; Eugene I. Davis, chairman and chief executive officer of Pirinate Consulting Group, LLC; Daniel W. Dienst, chairman of Metal Management, Inc.; and Richard Kochersperger, director of the Food Marketing Group.
Additional board nominees are Larry J. Liebovich, former president of Liebovich Steel & Aluminum Co.; Gerald Morris, president and chief executive officer of Intalite International NV; and private investor Allen Ritchie.
Chicago-based Ryerson distributes and processes metals and other materials in the United States, Canada, Mexico and India.
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