Clearwater should separate the consumer products unit, which makes tissue, from the pulp and paperboard unit so that it can sell one or both of the businesses, Stamford, Connecticut- based SAC said today in a regulatory filing. SAC also proposed that Spokane, Washington-based Clearwater hire an investment bank to advise on divestitures and add two independent directors to the six-member board.
SAC told Clearwater’s board in a May 1 letter that the stock is “deeply undervalued,” partly because litigation and a tissue acquisition were causing uncertainty. Clearwater is worth $43 to $67 a share when the two businesses are evaluated separately, SAC said in the letter. SAC holds 1.64 million Clearwater shares representing 7.1 percent of outstanding stock, it said.
Matt Van Vleet, a Clearwater spokesman, didn’t immediately return a phone message seeking comment after regular business hours.
Clearwater rose 0.4 percent to $36.66 at the close in New York.
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