LSB Industries' shareholder criticizes the way company is run
Engine Capital, a shareholder of Oklahoma City-based LSB Industries Inc., issued an open letter Monday that it sent to LSB's directors, criticizing the firm's corporate governance, corporate structure, communication with shareholders and repeated operational failures. Engine Capital said LSB's value far exceeds its current stock price, and that value could be unlocked through changes in the board's composition, a sale or spinoff of LSB's climate control business, and conversion of some of the company's chemical assets into a publicly-traded master limited partnership. LSB issued a statement expressing disappointment that Engine Capital made the letter public, “especially in light of our ongoing dialogue.” The company said its leadership holds a significant amount of company stock, aligning their interests with those of all shareholders. “The board will thoroughly evaluate Engine Capital's letter with input from the management team and will respond publicly in due course,” the company's statement said. LSB also said Monday that it has resumed ammonia production at its chemical facility in Pryor.