In an ongoing dispute over an upcoming merger, Martin Midstream Partners (MMLP) announced Dec. 18 that proxy advisory firm Glass Lewis had recommended that shareholders approve of the proposed deal with Martin Resource Management Corp. (MRMC).

MRMC is proposing to buy MMLP for $4.02 per common unit. A vote by unitholders is scheduled for Dec. 30.

“In light of the findings from the financial advisors’ valuation analyses of the company, as well as our review of the company's relative performance to its peers, we believe the merger consideration represents an attractive exit valuation and premium for the company's unaffiliated unitholders,” Glass Lewis wrote in its Dec. 18 report.

In the report’s announcement, Martin Midstream encouraged unitholders to approve the deal in the upcoming vote.

Nut Tree Capital Management and Caspian Capital, which claim to represent about 13.6% of outstanding shares of MMLP, has opposed the $132 million transaction, saying that the deal undervalues the midstream company and "strips value" from common unit holders of MMLP.

On Dec. 16, Nut Tree and Caspian distributed a letter to unitholders urging them to reject the deal.

“We believe the merger significantly undervalues MMLP’s common units, and will strip value from MMLP’s common unitholders and unfairly transfer it to the company’s insiders, including Ruben Martin III, MRMC’s president, CEO and chairman of its board, who also serves as the chairman of the board of the general partner of MMLP,” the Nut Tree-Caspian letter said.

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