The Tide Could Turn at Calgon

As a recent SEC filing shows, Starboard Value now -- an activist hedge fund managed by Jeffrey Smith -- owns 4.4 million shares of Calgon Carbon (CCC). Calgon, which has a market capitalization of just over $900 million, primarily sells water- and air-treatment products for environmental and industrial purposes, including to food or medical-supply companies. The stock was recently running ahead of the market for the Thursday session, and it currently trades at about $16 per share. This would mean a position of about $70 million for Starboard. Based on that 13F filing, Calgon is one of the fund's five largest positions by market value.

The better-known water-softener and beauty products under the Calgon brand, with the "ancient Chinese secret" and "Calgon, take me away" catchphrases, are now owned by other companies. With Starboard's stake in the company now at 7.7% of total shares outstanding, the fund's management has disclosed that it plans to obtain up to three seats on Calgon's board. The latter has responded by noting that it has met with Starboard and continues to be committed to shareholder value. But we would certainly expect that management to be at least somewhat resistant to any suggestions from Starboard, as the fund has tended to take on an activist role....339 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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