Carlson Capital Files 13D on Boise, Argues Company Worth More Than Recent Buyout Offer ~ market folly

Wednesday, September 25, 2013

Carlson Capital Files 13D on Boise, Argues Company Worth More Than Recent Buyout Offer

Clint Carlson's hedge fund firm Carlson Capital has filed a 13D on shares of Boise (BZ).  Per the filing, Carlson has revealed a 6.7% ownership stake in BZ with 6,725,000 shares. 

This marks an increase of 449% in their position size since the end of the second quarter. as they've drastically ramped up their stake.  The 13D was required due to activity on September 16th.  While Carlson previously owned BZ shares and were out buying throughout the first half of August, they really ramped up their stake on September 16th & 17th, purchasing shares around $12.5x.

Carlson Argues For Higher Price

On September 16th, Packaging Corp of America (PKG) entered into an agreement for a tender offer to acquire all of Boise at $12.55 per share.

On September 23rd, Carlson sent a letter to the board of Boise arguing that the company is worth between $14 and $17 and that the current offer does not reflect fair value.

Further, the hedge fund argues that a separation of the company's paper and packaging segments would better help the company participate in industry consolidation.  You can view Carlson's full case for the company here.

Per Google Finance, Boise is "a manufacturer of packaging and paper products, including corrugated containers and sheets, containerboard, protective packaging products, imaging papers for the office and home, printing and converting papers, label and release papers, newsprint and market pulp. The Company operates in the United States, Europe, Mexico, and Canada. The Company operates in three segments: Packaging, Paper, and Corporate and Other. The Company’s newsprint is sold primarily to newspaper publishers in the southern and southwestern the United States."

blog comments powered by Disqus