bjdlzx/E+ via Getty Images
Update 12:20pm: Updates shares, adds MRC Global comment.
MRC Global (NYSE:MRC) rose 3.3% amid a report that activist investor Engine Capital is pushing the pipe, valve, and fittings distributor to explore a sale.
Engine Capital disclosed the push in its Q3 letter to investors, according to a Bloomberg report on Monday that cited the letter. Engine called MRC Global’s (MRC) stock “deeply undervalued.”
The investor has about a 4% stake in MRC Global (MRC), according to the Bloomberg report. Engine Capital believes it could see $14 to $18 a share in a sale.
MRC has a market cap of $841 million.
MRC Global commented on the Engine Capital news on Monday.“At MRC Global, we’re focused on driving shareholder value every day by growing our businesses, creating capital efficiency, increasing cash flow and profitability, and prudently managing our balance sheet,” a company representative said in a statement. “The MRC Board and management team are committed to serving in the best interests of all our shareholders and we will continue to take actions that are in the best interests of driving long-term value creation.”
Engine Capital declined to comment to Bloomberg.
MRC Global (MRC) is scheduled to report Q3 results on Nov. 7.