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Shares of Barnes Group (NYSE:B) rose 3% in early trading Friday after a new activist hedge fund, Irenic Capital Management, reportedly built a stake in the company and will push for board changes and a potential sale.
Irenic told Barnes management that the company could fetch up to $60 per share in a sale or more than double the current price, Bloomberg News reported citing people familiar with the matter.
The hedge fund sees the company’s aerospace unit worth more than the entire current market cap. Further, the fund raised concerns about the company’s capital allocation, operating performance, executive compensation, and failure to hit financial targets.
Irenic was founded by Adam Katz, a former executive at Elliott Investment Management, and Andy Dodge, formerly of Indaba Capital Management. Barnes Group is the firm’s first activist target, although the size of the position could not be learned.
