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  "documentTitle": "Tronox Incorporated (TROX)",
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  "authorName": "Sandell Asset Management",
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  "presentationDate": "2011-12-01 00:00:00",
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  "notes": "Uses quotes from company presentations and conference calls to build an argument for capital allocation changes.",
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      "text": "We believe TROX can easily pay between $24 – $43/share in cash and remain conservatively capitalized",
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      "text": "TROX cites that significant free cash flow will be generated with a potential dividend policy consistent with its peers, but only an “opportunity” to return additional cash to shareholders or to make potential high-return investments",
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      "text": "We believe TROX can easily pay between $24 – $43/share in cash and remain conservatively capitalized",
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      "text": "“We’ve announced that we intend to issue dividends that are consistent with the industry peers. But with this level of free cash flow generation, there will also be opportunities for return of additional cash above and beyond the dividend to shareholders, and we will be exploring those alternatives.” (TROX conference call – 10/10/11)",
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      "text": "“No incremental debt incurred in acquisition” (TROX presentation – slide 15, 10/6/11)\n“Future cash flow from operations expected to be sufficient to pay cash portion of merger consideration ($12.50 per share or ~$190 million in aggregate)” (TROX presentation – slide 15, 10/6/11)",
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      "text": "TROX explicitly made comments regarding its “conservative” pro forma capital structure with significant “financial flexibility” — that would indicate to us the company’s pro forma balance sheet is not being optimized",
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      "text": "We believe management must now be more aggressive in closing the significant gap between the current stock price and fundamental value",
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      "text": "If the Exxaro deal is as attractive as TROX claims and as we believe, the conservative pro forma capital structure could be better utilized by levering the balance sheet to reward shareholders with a substantial amount of cash in the form of a large special cash dividend",
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      "text": "\"No incremental debt incurred in acquisition\" — TROX presentation – slide 15, 10/6/11; \"Future cash flow from operations expected to be sufficient to pay cash portion of merger consideration ($12.50 per share or ~$190 million in aggregate)\" — TROX presentation – slide 15, 10/6/11; \"We've announced that we intend to issue dividends that are consistent with the industry peers. But with this level of free cash flow generation, there will also be opportunities for return of additional cash above and beyond the dividend to shareholders, and we will be exploring those alternatives.\" — TROX conference call – 10/10/11",
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