- LSB Industries (LXU +1.5%) shareholder Engine Capital this morning issued an open letter seeking change in the composition of LSB's, a sale or spinoff of the climate control business, and creation of an MLP of certain chemical assets.
- The activist firm thinks the climate control business is worth $300M-$350M, or at least 9x normalized EBITDA based on where its public peers trade and perhaps considerably more to synergistic buyers based on M&A multiples.
- LSB says it will evaluate the letter, but believes its interests are aligned with shareholders given management's ~19% ownership stake in the company.
- Also, LSB says its Pryor, Okla., chemical facility has resumed ammonia production after being taken out of service to perform unplanned maintenance.
at MarketWatch.com (May 16, 2012)