Activist investor presses Ashland

Activist investor Cruiser Capital Advisors has sent a letter to the board of specialty chemical maker Ashland Global Holdings asserting the firm should be worth more than $125 a share. The stock now trades at about $80. In late October, Cruiser nominated four former chemical industry executives, including onetime Union Carbide and Hercules CEO William Joyce, to Ashland’s board. Cruiser charges that Ashland’s expenses are too high and that it has failed to achieve profitability targets for the past four years. Ashland says it has created “significant value for stockholders” and is making “good progress” on commitments to investors. Cruiser, which has a 2.5% stake in Ashland worth about $120 million, says it is worried that Ashland “will take the easiest path available and sell Ashland at a sub-optimal price,” thus denying existing shareholders of significant value.