Activist investor Barington nominates two directors at Xerium (updated)

Eastern

12/04/2018 18:43

(Adds request for comment from company, stock price)
    By Svea Herbst-Bayliss
    BOSTON, April 12 (Reuters) - Activist investor Barington
Capital Group LP has launched a fight for two board seats at
machine industry company Xerium Technologies Inc.  XRM.N ,
according to a regulatory filing made on Thursday.
    The New York-based hedge fund, which owns 5.05 percent of
Xerium, nominated two directors to sit on the company's eight
member board. It named Jared Landaw, the firm's chief operating
officer, and Michelle Applebaum, a former steel market industry
analyst, on March 13.
    On March 19, six days after Barington nominated its
candidates, the company said it would explore strategic
alternatives. One day after making that announcement, Xerium's
chairman, James Wilson, met with Barington representatives.
    The company did not return requests to comment.
    On Thursday, the share price climbed 2 percent to $6.57.
Since the start of the year, the stock has surged 51 percent.
    Barington is urging the company, which makes products used
primarily in the production of paper, to consider selling itself
or to find a way to refinance its $480 million of 9.5 percent
senior notes.
    The hedge fund currently has representatives on the boards
of three industrial companies; A. Schulman, Inc.  SHLM.O ,
OMNOVA Solutions, Inc. OMN.N  and The Eastern Company  EML.O .
    In February, LyondellBassell Industries NV  LYB.N  agreed to
buy Schulman in a deal valued at $2.25 billion. 
    James Mitarotonda, who runs Barington, tends to invest in
industrial companies or retail companies. Barington, along with
Shah Capital and NuOrion Partners, reached an agreement with
Avon Products Inc. last month to put Mitarotonda on the board.

 (Reporting by Svea Herbst-Bayliss; Editing by Bernadette Baum)
 ((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))