Former Exec. Takes Stake in Metal Management

T. Benjamin Jennings, formerly a top executive with Metal Management, recently purchased a significant block of Metal Management stock. Jennings, formerly CEO of the Chicago-based recycling company, purchased 842,000 shares of stock for about $10 million the last week of May. The large purchases results in Jennings acquired an 8.3 percent stake in the company.

The money from the purchase came through an unsecured bridge loan made to Jennings by European Metal Recycling Ltd.

According to recent SEC filings, the loan will accrue interest at the rate of 4 percent a year, and shall be due and payable in full no later than 90 days from the date when the loan was made.

The loan made by EMR has generated some significant interest after it was revealed late last month that the European-based metal recycling firm had purchased a 14.8 percent interest in Metal Management.

According to a statement by EMR, the company’s purchase of the shares “may or may not, lead to EMR developing a proposal to negotiate a further interest in the company.”

These recent moves have generated some recycling executives who see these two recent moves as a possible prelude toward EMR making a play for Metal Management’s assets.

EMR has a number of facilities in Europe, as well as sales offices in the United States.