(Reuters) - Jeff Ubben-run activist investor ValueAct Capital Management LP has reported a 6.8 percent stake in U.S. railcar maker Trinity Industries Inc (TRN.N), becoming its second-biggest shareholder.
ValueAct Capital Master Fund LP, a fund of ValueAct Capital Management, said it purchased Trinity's securities, as of July 18, based on the belief that they were "undervalued" and "represented an attractive investment opportunity". (bit.ly/2aBUdzc)
The fund also said it intended to hold talks with Trinity’s management and board to “discuss ways to enhance shareholder value”, by suggesting a possible change in board composition.
ValueAct said it would also have discussions on the company’s business strategy, executive compensation and corporate governance.
Up to Thursday’s close, the company’s stock had fallen about 13 percent this year, compared with an about 11 percent increase in the Dow Jones U.S. Industrials index .DJUSIN.
Trinity’s shares were up 5 percent at $22.00 in premarket trading on Friday.
The company reported a 29 percent decline in revenue for the second quarter ended June 30, hurt by lower railcar deliveries.
Vanguard Group Inc was Trinity’s biggest shareholder as of March 31, with an 8.51 percent ownership, according to Thomson Reuters data.
Reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel