Atlantic Investment Management Inc., a New York-based hedge fund, increased its stake in Rockwood Holdings Inc. because it said it supports management’s plans to transform the business.
Atlantic owns 3.92 million shares, or 5.05 percent, of Rockwood, according to a regulatory filing today. That’s up from a 3.8 percent stake that Princeton, New Jersey-based Rockwood reported on June 30, according to data compiled by Bloomberg.
Rockwood, the world’s largest producer of lithium products, agreed on Aug. 23 to acquire Talison Lithium Ltd. for C$724 million ($746 million) to gain new supplies of the metal used in rechargeable batteries. The company also is considering a sale or initial public offering for its Sachtleben unit, which makes titanium dioxide, a white pigment known by its chemical formula TiO2.
“We are supportive of management in buying Talison and spinning off or IPOing TiO2,” Stephen Fisch, an analyst at Atlantic, said today in a telephone interview.
Atlantic is a “constructive” shareholder that continues to talk with Rockwood’s managers, he said. The filing was triggered by the increased stake, and there are no plans to wage a proxy fight, he said.