Financier Soros Doubles Group’s Investment in WMX Technologies
WASHINGTON — George Soros more than doubled his investment group’s stake in WMX Technologies Inc. and said he may seek to boost the company’s stock price.
Soros Fund Management, an investment advisory business run by the billionaire, began purchasing stock in the Oak Brook, Ill., company during the first quarter of this year. Soros reported that his investment funds at March 31 owned 2.1% of WMX, the world’s largest waste-management company.
The investment group disclosed Friday that it spent about $511.7 million during the past two months to acquire about 14.59 million additional WMX common shares, raising its overall stake to 5.09%.
The WMX stake is now the largest single position in Soros Fund Management’s $6.5-billion stock portfolio, unless the money manager has greatly increased another holding since March 31. The 25.22 million shares that the group now holds have a current market value of $876 million, based on WMX’s stock price Thursday.
Perhaps because the WMX stake is so large, the Soros group went beyond customary practice of simply stating that the shares were purchased as an investment.
In a Schedule 13D filed Friday with the Securities and Exchange Commission, the group also said they may push WMX to boost its stock price. “From time to time, the reporting persons intend to discuss with management of [WMX] the reporting persons’ suggestions for enhancing shareholder value,†Soros said in the filing.
These suggestions, according to the filing, may relate to some sort of extraordinary transaction, the investment group added. However, the Soros Group also took the time to state in the filing that they “do not intend†to seek control of WMX or participate in its management.
A WMX official declined comment on the filing and Soros officials couldn’t be reached. In general, Soros Fund Management declines to comment on its individual stock positions.
The price of WMX shares has been rising in recent months, partly because word had leaked that Soros was buying the stock, some analysts say.
On Friday the stock gained $1.125 to $35.875 on the New York Stock Exchange.
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