Recs

4

Relational Investors Increases Stake in SPX

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

A month after taking an 8.76% stake in SPX (NYSE: SPXC  ) , an industrial equipment manufacturer, Relational Investors disclosed in a 13D filing with the SEC that it has upped that position to 9.9%.

Relational previously said it believed the business remained attractive, but that a "growth at any cost" strategy had destroyed shareholder value and the company was in need of change. The investment firm is looking to increase operating margins by accelerating the speed with which it divests underperforming assets, establishing rigorous capital allocation disciplines, and properly aligning executive compensation and shareholder value creation.

SPX had attempted to buy Gardner Denver (UNKNOWN: GDI.DL  ) for $4 billion in December, but no deal ever emerged. Because the size of the transaction would have exceeded even SPX's market cap at the time, Relational Investors, which wasn't a shareholder at the time, was motivated to intervene because of the company's pursuit of acquisitions that it believed harmed shareholder value.

If SPX can't achieve those goals and become valued at least as well as its peers, then Relational says it ought to pursue strategic alternatives, which is often a euphemism for putting the company on the market for sale.


Read/Post Comments (0) | Recommend This Article (4)

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2333067, ~/Articles/ArticleHandler.aspx, 8/28/2016 5:08:47 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,395.40 -53.01 -0.29%
S&P 500 2,169.04 -3.43 -0.16%
NASD 5,218.92 6.71 0.13%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/26/2016 4:02 PM
SPXC $19.02 Down -0.15 -0.78%
SPX CAPS Rating: *****
GDI.DL $0.00 Down +0.00 +0.00%
Gardner Denver CAPS Rating: ****

Advertisement