Shareholder urges Tronox to consider consolidation

By Lisa Kerner

Charlotte, N.C., Nov. 8 - Tronox Inc. investor RLR Capital Partners, LP said while its confidence in the company's management continues to increase, RLR believes Tronox shares are "significantly undervalued."

"The logic and inevitably of further consolidation in the titanium dioxide industry is irrefutable," RLR's Robert L. Rosen said in a letter to Tronox chairman and chief executive officer Thomas W. Adams. The letter was part of a schedule 13D filing with the Securities and Exchange Commission.

According to RLR, "the titanium dioxide industry is heavily concentrated, with the top five players holding more than 70% market share, suggesting that even one further round of consolidation could have a very meaningful impact on industry fundamentals and valuations."

RLR owns 1.2 million shares, or 5.24%, of the Oklahoma City-based titanium pigment manufacturer.

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