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(Reuters) - Intertape Polymer Group Inc (ITP.TO) investors FrontFour Capital Group and Zelman Capital urged the packaging products maker to take steps including buying back more shares and adding industry experts to its board to boost shareholder value.
The shareholders, which together own about 6.5 percent of Intertape, also said on Tuesday that they believed the company's stock had an upside of 52 percent to the current market price.
Intertape's shares, which have fallen 18.5 percent this year, closed at C$15.17 on the Toronto Stock Exchange on Monday.
"We also believe that IPG is a highly attractive acquisition candidate due to its strong market position within its product lines," FrontFour and Zelman said in a letter to Intertape's board.
Investment adviser FrontFour owns about 2.8 million shares and hedge fund Zelman about 1 million in Intertape, which has a market value of about C$937 million ($706 million) based on shares outstanding as of June 30.
The investors also asked Intertape to increase borrowing to buy back shares, saying the company was "over-capitalized with equity", and said it should consider a listing in the United States.
Intertape's net earnings fell 3.3 percent to $11.7 million in the quarter ended June 30, while revenue rose 4 percent to $196.6 million.
Reporting by Anet Josline Pinto in Bengaluru; Editing by Kirti Pandey