Bloomberg News

Clearwater Should Ready Tissue, Pulp Units for Sale, SAC Says

August 17, 2012

Clearwater Paper Corp. (CLW:US) should separate the company’s tissue and pulp units for a possible sale, SAC Capital Advisors LP, the hedge fund run by Steven Cohen, said.

Clearwater should separate the consumer products (CLW:US) unit, which makes tissue, from the pulp and paperboard unit so that it can sell one or both of the businesses, Stamford, Connecticut- based SAC said today in a regulatory filing. SAC also proposed that Spokane, Washington-based Clearwater hire an investment bank to advise on divestitures and add two independent directors to the six-member board.

SAC told Clearwater’s board in a May 1 letter that the stock is “deeply undervalued,” partly because litigation and a tissue acquisition were causing uncertainty. Clearwater is worth $43 to $67 a share when the two businesses are evaluated separately, SAC said in the letter. SAC holds 1.64 million Clearwater shares representing 7.1 percent of outstanding stock, it said.

Matt Van Vleet, a Clearwater spokesman, didn’t immediately return a phone message seeking comment after regular business hours.

Clearwater rose 0.4 percent to $36.66 at the close in New York.

To contact the reporter on this story: Jack Kaskey in Houston at jkaskey@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net


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Companies Mentioned

  • CLW
    (Clearwater Paper Corp)
    • $66.95 USD
    • 6.81
    • 10.17%
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