Ecolab (ECL) Trades Higher; Gives Gates' Cascade More Ownership Potential
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Ecolab Inc. (NYSE: ECL) shares moved higher early after announcing it entered an amended stockholder agreement with Cascade Investment, L.L.C. and the Bill & Melinda Gates Foundation Trust related to their investments in Ecolab.
Shares are up about 1.7 percent Monday with implied volatility 7.8 percent higher from last Friday's close to 14.3 percent.
Earlier, Ecolab announced it had amended its stockholder rights plan so that Cascade and the Foundation Trust would in the future be able to acquire up to 25% of Ecolab’s outstanding shares. Cascade currently holds 27,001,348 shares, or 9.3%, and the Foundation Trust currently holds 4,366,425 shares, or 1.5%, of Ecolab’s outstanding shares.
Under the agreement, if Cascade and the Foundation Trust own in the aggregate 15% or more of the outstanding Ecolab shares, Cascade and the Foundation Trust have agreed not to seek control of, or encourage others to seek control of, the company or the Board of Directors, and accordingly they will support the Ecolab Board’s director nominees as long as a Cascade representative is given the opportunity to serve as a director. Currently, Michael Larson, Chief Investment Officer for William H. Gates III, and the business manager for Cascade, is an Ecolab director.
Shares are up about 1.7 percent Monday with implied volatility 7.8 percent higher from last Friday's close to 14.3 percent.
Earlier, Ecolab announced it had amended its stockholder rights plan so that Cascade and the Foundation Trust would in the future be able to acquire up to 25% of Ecolab’s outstanding shares. Cascade currently holds 27,001,348 shares, or 9.3%, and the Foundation Trust currently holds 4,366,425 shares, or 1.5%, of Ecolab’s outstanding shares.
Under the agreement, if Cascade and the Foundation Trust own in the aggregate 15% or more of the outstanding Ecolab shares, Cascade and the Foundation Trust have agreed not to seek control of, or encourage others to seek control of, the company or the Board of Directors, and accordingly they will support the Ecolab Board’s director nominees as long as a Cascade representative is given the opportunity to serve as a director. Currently, Michael Larson, Chief Investment Officer for William H. Gates III, and the business manager for Cascade, is an Ecolab director.
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