UPDATE 1-Reddy Ice shareholder opposes GSO Capital deal
(Recasts, adds details)
July 16 (Reuters) - Shamrock Capital Advisors Inc., owner of 5.4 percent of Reddy Ice Holdings Inc. (FRZ.N), opposed Reddy's $1.1 billion takeover by hedge fund GSO Capital Partners LP, calling the purchase price "grossly inadequate."
On July 2, the maker of packaged ice had said it agreed to be acquired by certain funds managed by GSO for $31.25 a share, which is 9.6 percent more than the stock's closing price of $28.52 on June 29.
Shamrock said, based on future cash flow, it valued the company between $42 and $44 a share. This is about 34 percent to 41 percent above GSO's offer.
In a letter to Reddy Ice's board of directors, Shamrock proposed the company begin a self-tender for about 15 percent of outstanding shares at $33 a share, about 6 percent more than the GSO offer.
Shares of the Dallas, Texas-based company, whose Ice Factory system lets grocery and convenience stores automatically make and package their own ice, were trading up more than a percent at $31.15 in afternoon trade on the New York Stock Exchange.
(Reporting by Supantha Mukherjee in Bangalore)
((Editing by Pratish Narayanan; Reuters Messaging: supantha.mukherjee.reuters.com@reuters.net; within U.S.+1 646223 8780; outside U.S. +91 80 4135 5800)) Keywords: REDDYICE TAKEOVER GSOCAPITAL/SHAMROCK
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