Major shareholder puts API in shop window

US holding company Steel Partners has tired of being a large minority stake holder in API Holdings and has written to the UK packaging and holograms supplier suggesting it put itself up for sale.The way Steel Partners sees it the market price of API Group does not reflect the intrinsic value of the firm. The stock market valuation of API is just over £32m, and Steel Partner's 32.4% stake is therefore worth around £10.4m.It would be an unusual set of directors that believed the value of its company was underestimated by the market (particularly the Steel Partners representative on the board) but where API's board might disagree with Steel Partners is with the US firm's solution to the problem, which is to seek a buyer for the company.From the tone of the letter Steel Partners sent to the API board it seems like the discussion between API and its major shareholder have been cordial - the US firm said Group Chief Executive Andrew Turner and his team "have done a wonderful job returning API to solid profitability and growth" - but, having considered some time ago making a bid for API itself, Steel now clearly thinks the best way forward is for someone else to take over the company."We feel there is no time like the present to commence an auction that will lead to a sale of the company to the highest bidder. We therefore suggest that the board of directors direct the investment bank engaged by API to conduct a sale process," Steel's letter to Turner said.API issued a statement saying it has received no other approaches for the company and that it is not currently involved in any sale process. "However, the board takes the views of all its shareholders extremely seriously and will give due consideration to the proposal from Steel and keep shareholders informed of any significant developments," the statement said.The shares rose 4.5p to 42p after the news of Steel Partners' suggestion broke.jh Abrdn Property