Glass Lewis Backs Martin Midstream's Buyout Deal with Martin Resource

(Reuters) — Martin Midstream Partners said on Wednesday that proxy advisory firm Glass Lewis has recommended the energy infrastructure firm's unitholders to vote for the company's proposed buyout deal with Martin Resource Management Corp.

The announcement of the Glass Lewis report comes days after Martin Midstream had said that another proxy advisory firm, Institutional Shareholder Services (ISS) had also recommended a positive vote for the deal.

However, two hedge funds, Nut Tree Capital Management and Caspian Capital, holding 13.6% of Martin Midstream, are promoting a rival bid and urging shareholders to vote against the deal.

The two hedge funds have argued that a $4.02 per common unit deal undervalues the company.

The unitholder meeting is scheduled for Dec. 30.

Martin Midstream agreed to a $157 million deal with Martin Resource in October.

Martin Midstream, which focuses on storing and transporting fuels, said Glass Lewis has reported the merger represents an "attractive exit valuation and premium for the company's unaffiliated unitholders".

Nut Tree, Caspian, Glass Lewis and ISS did not immediately respond to requests for comments.

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