Skip to main content
Sister Publication Links
  • Automotive News
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • BEST PLACES TO WORK
  • News
    • MID YEAR REPORT
    • TIRE MAKERS
    • HUMANITARIAN
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OBITUARIES
    • OPINION
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
  • Resources
    • ADVERTISE
    • AWARDS
    • CLASSIFIEDS
    • DIRECTORY
    • SHOP FLOOR
    • Best Places to Work
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
February 17, 2014 01:00 AM

Hedge fund gains stake in Titan Intl.

Mike Mcnulty
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    NEW YORK—MHR Fund Management L.L.C. has put itself in a position to become Titan International Inc.'s second largest shareholder.

    The New York City-based hedge fund, headed by Mark Rachesky, disclosed in a Securities Exchange Commission filing that it paid approximately $67.8 million for 5.84 million shares of the Quincy, Ill.-based tire and wheel manufacturer, and is committed to spend $26.3 million more in outstanding call options on an additional 2.6 million shares. Together the purchases represent 10.9 percent of Titan's common stock.

    MHR's stake makes it Titan's second largest shareholder, behind Blackrock Fund Advisors, which bought 1.8 million shares in late 2013 to boost its stake to about 11.4 percent.

    While MHR's stock purchase raised a few rumors of a possible takeover bid by the hedge fund, Titan CEO Maurice Taylor Jr. said he was not fazed by the speculation, pointing out that it's nothing more than that.

    “I'm not concerned—I just serve,” he said. “In fact, I'm honored” that MHR has taken an interest in Titan.

    He said he has met with Mr. Rachesky, enjoyed his company and felt comfortable with him. MHR generally invests in distressed or under-valued companies.

    “I was with him (Rachesky) to tour three of our plants,” Mr. Taylor said. “He said we were undervalued. And I agree with him. He's a very smart guy and has a great reputation” as an investor. “I was very impressed with him.”

    Mr. Taylor said he believes MHR will be a long-term shareholder of Titan, and the company will benefit from the investment as it moves ahead with its growth plan, which includes possible acquisitions.

    “He told me he thinks his money is safe,” Mr. Taylor said, adding that Mr. Rachesky did a year-long study of the business before making the investment.

    According to its website, MHR “manages in excess of $5 billion and takes a highly differentiated, control-focused, private equity approach to investing in distressed and undervalued middle-market companies utilizing its proprietary approach to sourcing.”

    This report appeared in Rubber & Plastics News, an Akron-based sister publication of Tire Business.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Canada court rules for Michelin in tire trademark case
    2
    Grupo Tersa's Rodrigo Valle Hernandez dies at 69
    3
    Tire Business ranks the Top 75 Tire Makers of 2023
    4
    Michelin to roll out tires with recycled plastics by 2024
    5
    Hankook upending tire design paradigms with i-Flex airless tire
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • BEST PLACES TO WORK
    • News
      • MID YEAR REPORT
      • TIRE MAKERS
      • HUMANITARIAN
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OBITUARIES
      • OPINION
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
      • RUBBER NEWS EVENTS
    • Resources
      • ADVERTISE
      • AWARDS
        • Best Places to Work
      • CLASSIFIEDS
      • DIRECTORY
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
    • DIGITAL EDITION