Los Angeles-Sherwood Investments Overseas Ltd. said Dec. 18 that it has increased its stake in Rentech Inc. from 2.86 percent to 3.24 percent. In addition, it is now offering to buy all issued and outstanding shares at $2.28, rather than the $2.70 that it proposed in November (GM Nov. 26, p. 1). Sources told Green Markets the decrease was likely due to Rentech’s recent earnings report, in which a $38.3 million ($.13 per share) one-time charge was taken (GM Dec. 17, p. 14). However, the offer is still above the market. Sherwood’s Julian Benscher, in a letter to Rentech CEO Hunt Ramsbottom, noted that the offer represents a premium of more than 30 percent to the Dec. 17 closing price. He also reiterated that this is an offer and not an “offer to make an offer.” Ramsbottom had said the latter about Sherwood’s November offer.
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