Mantle Ridge Continues Its Attack on Air Products, Talks of `Restoring Integrity’

— Jeff Ward, Lehigh Valley News Briefs

Activist investor Mantle Ridge owns about $1.3 billion of stock in Air Products (NYSE:APD) and is getting its money’s worth in attacking management of the company.

Today, the New York City-based firm put out a letter to shareholders — even people like me, who do not have $1.3 billion of the stock — that challenges the integrity of company management.

It’s all at this website.

Mantle Ridge is waging what’s called a proxy battle, trying to get shareholders to side with it against management in the election of directors. Air Products will hold its annual meeting Jan. 23. Both sides are seeking the votes of people and investment groups that own the stock.

The votes are mostly cast online but the ballots are still known by the old name of proxy cards. Thus it’s a proxy battle. It’s hard to prevail against the company, but even when management wins, there are often changes made.

Mantle Ridge has made a lot of comments about Air Products, but with stocks, it all comes down to one figure: the price. Rather than repeat it all — see the website for that — Mantle Ridge contends the stock could be trading at $425; the closing price today was $283.24.

While $1.3 billion is a lot of money, Mantle Ridge’s stake amounts to little more than 2% of the company’s $63 billion market capitalization.

In short, Mantle Ridge wants new board members and new management, and it opposes Chief Executive Seifi Ghasemi’s big push into clean energy.

In response, Air Products says it has added new board members and that shareholders will benefit by staying the course. They make their case on this website.

No matter what happens Jan. 23, there will be more drama to come.

— Disclosure: I own shares in Air Products.