A series of late-June trades has positioned Memphis-based Southeast Asset Management Inc. and its Longleaf Partners Small-Cap Fund with nearly 5.8 million of Texas Industries’ approximately 27.9 million outstanding shares of common stock. The trades were completed at just under $40/share—versus a July 5 closing price of $41.90—and consolidate a Southeast Asset/Longleaf TXI stake of about 20.7 percent. Citing interest in “undervalued companies,” Longleaf Partners effected its first major TXI trade, equating to a 12.7 percent stake, in fall 2006.
The most recent stock purchase follows by three months the addition of nearly 100,000 shares, priced at $40–$41.22, to the portfolio of NNS Holding, a Cayman Islands firm controlled by Egyptian billionaire Nassef Sawris. The investment arms NNS Holding with 5.54 million TXI shares. NNS and Longleaf backed a 2009 campaign in which Shamrock Activist Value Fund of Burbank, Calif.—then the third-largest TXI shareholder, with a 10.7 percent stake—challenged the company’s board elections, with Shamrock candidates unseating two incumbent directors.