Ancora Builds Stake in Ashland, Urges Full Sale

Ancora Alternatives has built a sizable stake in Ashland Inc and is pressing the Cleveland-based specialty chemicals company to pursue a full sale. The investor warned it may pursue a proxy fight if the board does not show meaningful progress by the director nomination window in September.

The fund began accumulating its position after Ashland’s shares fell in April following weaker-than-expected quarterly results. In a presentation, Ancora estimated a sale could lift the stock by at least 30%, targeting roughly $76 per share. Ashland’s market value is about $2.7 billion. News of Ancora’s campaign lifted the share price more than 6%.

Ancora expects a sale process to attract both strategic buyers and financial sponsors, citing Ashland’s portfolio of specialty chemical assets and a customer base that includes L’Oréal, Estée Lauder and Pfizer. The investor argues the company trades below the sum of its parts and that a breakup or sale could increase shareholder value.

The firm plans to present its case at the Wolfe Research Activist Conference and will use the public campaign to encourage discussions with potential bidders and to press the board and management to evaluate strategic alternatives. Ancora has indicated it will escalate to a proxy fight if the company does not demonstrate meaningful progress by the September nomination window.

Standard Investments, the investment arm of Standard Industries, holds close to a 10% stake and is Ashland’s largest shareholder. Market participants have suggested Standard could participate in any transaction; the investor has not commented publicly.

Ancora has criticized recent performance under CEO Guillermo Novo but has not explicitly demanded management changes, focusing instead on strategic action at the board level. The firm has conducted prior activist campaigns at companies including Norfolk Southern and Kohl’s.