Posted: Mar 20, 2013 8:31 PM by MTN News
BILLINGS - The directors of Stillwater Mine responded today to a takeover bid urging their shareholders to reject a proposal from a new group attempting to take over the company.
The company issued a release today that painted a positive outlook for the company and the platinum group metals industry. According to the release, they encourage shareholders to keep the current board intact:
"Under the leadership of our current Board and through the execution of a multi-year plan, Stillwater has positioned itself for meaningful platinum group metals (PGM)-focused growth at a time when PGM market dynamics are increasingly robust. Today, Stillwater is in a position to deliver increased shareholder value as many of our industry peers face significant operational and financial challenges. As such, we are pleased to inform you that the Company has nominated all of Stillwater's qualified directors for reelection at the annual meeting.
Given the Company's strong position and positive momentum, it is disappointing that a hedge fund, the Clinton Group, is waging a battle for control of your Company even though it only recently acquired just 1.2% of our outstanding shares and has no relevant experience investing in mining companies. In fact, according to public filings, the Clinton Group has only invested in 18 mining companies, none of them PGM-focused, with an average holding period of only 1.2 quarters, suggesting a significant short-term bias. At Stillwater, the Clinton Group has leveled a number of misguided criticisms and self-serving demands against the Company which either (a) offer no new strategies that the Board is not already pursuing, or (b) are misinformed and/or misdirected and will, in our view, be value-destructive for Stillwater's shareholders."
The annual shareholders meeting will be held May 2nd.