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Top Elementis Investor Pushes Asset Sales After Bid Rebuffed
- J O Hambro Capital expresses concerns over Elementis strategy
- Fund manager suggests divesting SummitReheis, chromium unit
Photographer: Ralph Orlowski/Bloomberg
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A top investor in Elementis Plc said the U.K. specialty chemicals group should explore asset sales if it continues to rebuff takeover offers from U.S. rival Minerals Technologies Inc.
Elementis management pursued “expensive, debt-funded acquisitions” that hurt its share price and invited opportunistic approaches, according to J O Hambro Capital Management Ltd. While the latest bid undervalues Elementis, it would be difficult to back the board if a more serious proposal emerged, said Alex Savvides, a senior fund manager at the firm.