Harbinger Capital encourages Ryerson stockholders to elect new directors

By Lisa Kerner

Charlotte, N.C., Aug. 7 - Harbinger Capital Partners Master Fund I, Ltd. and Harbinger Capital Partners Special Situations Fund, LP urged fellow Ryerson, Inc. stockholders to elect new directors to the company's board at the Aug. 23 annual meeting.

The investors believe the Chicago-based metal processor's current board, as well as its senior management, have "consistently underperformed."

"As Ryerson's largest stockholder, we are concerned that the Platinum Equity transaction is the result of a flawed process and may not represent the best course for maximizing shareholder value," Harbinger Capital Partners managing director Larry Clark said in a company news release. "

Ryerson's board agreed to the company's acquisition by Platinum Equity, LLC in a $2 billion transaction that will take the company private. Under the companies' July 24 definitive agreement, an affiliate of the Beverly Hills, Calif.-based private equity firm will acquire all of the outstanding shares of Ryerson common and convertible preferred stock for $34.50 per share in cash.

"We believe it is imperative that Ryerson's stockholders elect directors who are experienced, independent and committed to ensuring Ryerson stockholders receive full and fair value for their investments," Clark added.

Harbinger Capital is a New York investment firm managing more than $12 billion in capital.

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