In a new Schedule 13D filing, Carl Icahn’s Icahn Capital L.P. disclosed owning 10.58 million shares of Manitowoc Foodservice Inc. (NYSE:MFS), which account for 7.73% of the company’s total outstanding shares. These shares were received in connection with the separation of Manitowoc Company Inc. (NYSE:MTW)’s Crane and Foodservice businesses into two independent, publicly-traded companies. Earlier this month, Manitowoc Company Inc. (NYSE:MTW) completed the tax-free spin-off of Manitowoc Foodservice, pursuant to which MTW shareholders received one share of MFS for each share of MTW common stock owned. Icahn Capital L.P. had in possession 10.58 million shares of Manitowoc Company Inc. (NYSE:MTW) at the end of December 2015, so the activist investment firm received the same number of MFS shares following the separation. The post-separation Manitowoc Foodservice Inc. (NYSE:MFS) represents a leading commercial foodservice equipment company, which manufactures and services an integrated portfolio of hot and cold category products. The company supplies its foodservice equipment to both commercial and institutional operators, including full-service restaurants, quick-service restaurant chains, hotels, to name just a few. Just recently, Robert W. Baird initiated coverage on Manitowoc Foodservice with an ‘Outperform’ rating.
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As revealed by a freshly-amended 13D filing, Paul Singer’s Elliott Associates L.P. and its affiliates have collective economic exposure to around 13.2% of American Capital Ltd. (NASDAQ:ACAS). This economic exposure includes 12.48 million shares of common stock, as well as additional economic exposure to 8.0% of outstanding common stock in the form of cash-settled swaps with respect to 19.05 million shares. The activist investor’s entities had combined economic exposure to American Capital of roughly 11.9% in January 2016 (12.48 million shares of common stock and economic exposure in the form of cash settled swaps with respect to 18.80 million shares), as revealed in the fund’s previous 13D filing on the company. Earlier this year, the business development company (BDC), that primarily invests in senior and mezzanine debt and equity in buyouts of private companies, announced that its Board of Directors completed the initial phase of its previously-announced review process and authorized the solicitation of offers to purchase the entire company or its business lines separately. The BDC’s consolidated net asset value (NAV) per share was $19.88 on December 31, while American Capital Ltd. (NASDAQ:ACAS)’s shares are currently trading 27% below that value. Therefore, the sale of the entire company or its individual business lines will most likely disentangle locked up shareholder value. American Capital Chief Executive Officer and Chairman recently said that “our business lines and assets have tremendous value, which is not reflected in our current share price”. Anothony Bozza’s Lakewood Capital Management owns 6.37 million shares of American Capital Ltd. (NASDAQ:ACAS) as of December 31.
