Takeover Speculation Ends : Investment Firm Sells Its Stake in Fluorocarbon

A New Zealand-backed investment banking firm has sold its 8.6% stake in Fluorocarbon at a profit, ending speculation about a possible takeover.

American Strategic Investments, a New York-based company owned by New Zealand investors who want to invest in U.S. companies, sold 370,400 shares at $15.625 per share on March 4, according to reports filed with the Securities and Exchange Commission.

Stock in Fluorocarbon, a Laguna-Hills based maker of specialized plastic and rubber devices and fluid seals, closed Friday at $16.125, down 25 cents for the day, in the over-the-counter market.

An industry source said two institutions purchased the shares in private sales at the market price, but the identity of the new shareholders could not be learned.

Ownership Change

The source, who asked not to be identified, said American Strategic had gone through an ownership change in recent months and had been reevaluating its investments. American Strategic also recently sold a 6.9% stake in Van Dorn, a Cleveland-based machinery maker and a supplier to Fluorocarbon, the source said.

American Strategic Chairman Dugald Fletcher met with Fluorocarbon Chairman Peter Churm last month in Laguna Niguel, in what Churm described as a “get acquainted” visit.

Churm, who owns 333,000 shares, or 7.7% of Fluorocarbon’s stock, said he told Fletcher that Fluorocarbon had no intention of being taken over.

In an interview last month, Churm said: “He (Fletcher) wouldn’t answer what their intentions were. But I’m not so sure that they know their intentions.” Churm was traveling and could not be reached for comment Friday.

In an interview last month from his New York office, Fletcher wouldn’t disclose his plans for the investment. He was not available for comment Friday.

American Strategic had been buying shares in Fluorocarbon since 1986 and increased its stake as late as Nov. 30, when it bought 10,000 shares for $11.625 each.