US LSB Industries reaches deal with activist investor

04 April 2014 14:44 Source:ICIS News

HOUSTON (ICIS)--LSB Industries has reached an agreement with investor Starboard Value about the composition of its board, the US-based producer of nitrogen fertilizer and nitric acid said in a regulatory filing released late Thursday.

Under the deal, Daniel Greenwell, William Murdy and Richard Sanders are due to join the board while two current board members will not stand for re-election at LSB's next annual meeting and one current member will retire.

Greenwell is a former chief financial officer of US-based titanium dioxide (TiO2) producer Tronox, and Sanders is a former vice president of manufacturing at fertilizer firm Terra Industries, which in 2010 was acquired by CF Industries.

LSB said that Starboard, which owns about 4.9% of LSB’s outstanding shares, agreed to vote its shares in support of all of the company's director nominees at the annual meeting.

Furthermore, another stakeholder, Engine Capital, agreed to withdraw its nomination notice for board appointments and agreed to vote its shares in support of all of LSB’s director nominees, the company added. Engine holds about 0.9% of LSB’s shares.

By Stefan Baumgarten