3 January 2006 – Boston (MA): Hedge fund K Capital has announced it may sell some of its 8.4 per cent stake in OfficeMax .
K Capital, which said it does not intend to initiate a proxy fight to change the directors at the company, has claimed the retailer’s stock is undervalued and that a break-up or sale of the business may be in shareholders’ best interest.
However the Boston-based fund, which is to reduce its focus on US investments, said it expects to maintain a "significant investment" in the company.
In the wake of the announcement, OfficeMax shares fell $3.17 to close at $24.35 on the NYSE.
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