NEW YORK ( TheDeal) --Activist investor FrontFour Capital Group late Friday cut its activist stake in industrial manufacturer OM Group (OMG) to less than 5%, suggesting that the activist's campaign at the company is coming to an end.
The insurgent investor reported Friday that it had cut its stake to 4.998%, from 5.5%, a move that came after OM Group on June 1 agreed to be bought by Apollo Global Management in a $1 billion deal that has the buyout shop selling a large chunk of the firm to a third party, Platform Specialty Products (PAH) for $365 million, or $34 a share.
Though some had speculated that FrontFour might be gearing up to oppose the deal, both the sell-off and terms of the activist's settlement agreement with the company, reached in March, meant the firm wouldn't be opposing the deal, according to someone familiar with the firm.
FrontFour did not return calls.
Another activist fund, SpringOwl Asset Management, said June 3 that it had concerns about the transaction. However, the firm holds only a 0.23% stake in the Cleveland-based company.