This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Stillwater Slips on Hedge Fund Board Battle

Stocks in this article: SWC

"It is disappointing that a hedge fund, the Clinton Group, is waging a battle for control of your company even though it only acquired just 1.2% of our outstanding shares and has no relevant experience investing in platinum mining companies."

Stillwater added that according to filings, Clinton's "average holding period for past mining investments is only one-and-a-half quarters, suggesting a significant short-term bias."

Stillwater's own nominees for the eight-person board include board chairman and current CEO Francis R. McAllister, Craig L. Fuller, a former assistant to President Reagan for cabinet affairs from 1981 to 1989, and Steven S. Lucas, a partner at government-focused law firm Nielsen Merksamer Parrinello Gross & Leoni LLP, as well as other mining executives. The hedge fund announced Feb. 25 that it joined forces with former governor Schweitzer to bring change to Stillwater, which has seen its stock price dip nearly 20% over the past five years.

Schweitzer, who served two terms as governor, told the Associated Press when he agreed to join the hedge fund's slate that his main concern is the company's 1,500 employees in Montana. While governor, Schweitzer, a Democrat, lobbied to keep Montana businesses such as Stillwater operating locally.

Taxin said the governor was highly popular while in office and was very familiar with labor unions, regulators and other groups associated with Stillwater's operations in the region.

"He noticed our letter when we wrote it in December," Taxin said. "Stillwater is the largest public company in Montana and one of the largest employers in the state," Taxin said, adding Schweitzer was brought on board after leaving office last year after he hit term limits.

Platinum and palladium are both considered rare metals and are used in neurosurgical and dental devices, drugs for cancer treatment, and computer and automotive equipment.

Stillwater Mining declined Wednesday to comment further on the proxy contest.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs