Southeastern Asset Management reports 15% stake in Deltic Timber Corp.

by Talk Business & Politics staff ([email protected]) 726 views 

According to a filing Wednesday (Feb. 22) with the U.S. Securities and Exchange Commission, investment management firm Southeastern Asset Management of Memphis has picked up 1,827,558 shares of common stock in El Dorado-based natural resources company Deltic Timber Corp. That represents a 15% ownership stake in the company, according to the filing.

The shares are held in part by Southeastern’s affiliated fund, Longleaf Partners Small-Cap Fund. In response to the 13D filing, Deltic issued the following statement:

Deltic maintains an open dialogue with all shareholders and values their input. The Company has met and spoken with Southeastern on a number of occasions to discuss their ideas and looks forward to continued, constructive dialogue with shareholders focused on enhancing the value of Deltic.

“Deltic’s strategy is to continue to capitalize on improving housing and wood products markets. The Company’s assets are well positioned to benefit from increasing demand for southern yellow pine logs and lumber. Further, its strong balance sheet provides the flexibility to extract maximum value from its timberland, real estate and manufacturing operations.

“Deltic’s Board of Directors is committed to acting in the best interests of the Company and its shareholders, and regularly reviews its strategic priorities and opportunities to enhance value.

“Davis Polk & Wardwell LLP is serving as Deltic’s legal advisor, and Goldman, Sachs & Co. is serving as financial advisor.”

At the close of business Wednesday, Deltic’s shares (NYSE: DEL) ended at $82.51. Over the past 52 weeks, the company’s stock has traded at a low of $53.21 to a high of $85.49 per share.

Deltic is conducting a national search for a new president and CEO. The company’s board of directors announced late last year that Ray Dillon was retiring from the job. D. Mark Leland, a member of Deltic’s board, is filling both roles on an interim basis.