Hill International and Rapid Micro Biosystems Stock See Action From Activist Investors

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These disclosures are from 13Ds filed with the Securities and Exchange Commission. 13Ds are filed within 10 days of an entity’s attaining more than 5% in any class of a company’s securities. Subsequent changes in holdings or intentions must be reported in amended filings. This material is from Aug. 25 through Aug. 31, 2022. Source: VerityData

Activist Holdings

Hill International

(HIL)

Engine Capital reported a 10.1% stake, equal to 5,799,621 shares, in Hill International, a construction-management services company. Engine Capital revealed that it had entered a merger-support agreement with Hill and Global Infrastructure Solutions on Aug. 26.

On Aug. 16, Hill had agreed to be acquired by Global Infrastructure through a cash tender offer of $2.85 a share. Due to an unsolicited offer by another firm, Global Infrastructure later reworked its proposal, boosting its per-share offer to $3.40, and changing the deal to an outright merger requiring shareholder approval. Engine, which had supported the earlier transaction, did the same for Global Infrastructure’s updated plan. The acquisition is expected to close in the fourth quarter.

Rapid Micro Biosystems

(RPID)

Kennedy Lewis Investment Management owns 5,179,061 shares of biotech Rapid Micro, including 239,130 underlying warrants. Those figures are unchanged since Kennedy Lewis last filed a 13D on June 30. Then, Kennedy Lewis proposed taking Rapid Micro private through an unsolicited, all-cash offer of $5.00 per share. Rapid Micro’s board announced on Aug. 12 that it had rejected that bid, and also revealed that the company had initiated an internal strategic review.

In relation to that review, Kennedy Lewis and Rapid Micro entered into a confidentiality agreement on Aug. 26 “with respect to a potential strategic transaction” for which Kennedy Lewis agreed to non-disclosure obligations. The agreement is subject to customary standstill provisions and will be in place until no later than Aug. 26, 2023.

Decreases in Holdings

Dime Community Bancshares

(DCOM)

Basswood Capital Management has reduced its interest in the New York-based bank to 2,464,037 shares by selling 362,603 Dime Community shares at prices ranging from $32.31 to $35.22. Basswood, which provided no reason for the sales, still holds 6.4% of Dime Community’s outstanding stock.

At the end of July, Dime Community reported strong second-quarter earnings. Piper Sandler analyst Mark Fitzgibbon wrote that the company “was humming on all eight cylinders in the second quarter.” He lifted his price target on the stock to $38 from $37, and maintained his Overweight rating on it.

Howmet Aerospace

(HWM)

Elliott Management has lowered its stake in the aerospace and transportation hardware supplier to 36,581,922 shares. From Aug. 8 through Aug. 29, Elliott sold 4,483,078 Howmet shares “for portfolio management purposes” at prices ranging from $36.71 to $38.88.

Elliott stated that it “continues to have great confidence in [Howmet Aerospace’s] leadership, operational trajectory, and strategic direction.” The firm also noted that its equity partner and senior portfolio manager Dave Miller will remain on Howmet’s board.

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