NEW YORK (Thomson Financial) - Sherwood Investments Overseas Ltd. Monday, in
a letter to the board of Rentech Inc. and the company's chief executive,
advocated a buyout at $2.70 a share.
Sherwood owns about 2.86% of Rentech's outstanding shares.
Shares of Rentech rose 22.7% to $2.16. On Friday, shares of the company
closed at $1.76, a 52-week low.
In the letter, Sherwood noted that Rentech, an alternative fuel company
based in Denver, was nearing the completion of a $45 million product
demonstration unit that is scheduled to produce its first fuels by 2008. "The
PDU will allow Rentech to demonstrate its fuel technologies and will no doubt
create numerous lucrative licensing opportunities," Sherwood wrote.
The investment firm added that a barrel of Rentech's fuels could be sold for
less than half the price of a barrel of oil, which gave it the benefit of owning
a "tremendous" asset during a time of record oil prices.
"We are concerned that your weak share price may hinder your ability to
execute your business plan," Sherwood wrote, "and suggest that you should
consider either taking the company private or spinning off the fertilizer
operation."
Ryan Vlastelica
rv/jw
COPYRIGHT
Copyright Thomson Financial News Limited 2007. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|