(Updates with Ashland's response in the final paragraph.)

Ashland (ASH) was urged by activist Ancora Alternatives, which has built a significant stake in the company, to sell itself, as a deal could boost its share price by at least 30%, Reuters reported Tuesday, citing a presentation it reviewed.

The hedge fund said it is prepared to launch a proxy fight at Ashland if no tangible progress is made toward reaching a deal by the time the window to nominate board members opens in September, the report said.

Ancora confirmed the Reuters report, adding it had no further comment to MT Newswires.

"Ashland's Board of Directors and management team are committed to driving sustainable value creation for all shareholders," Ashland said in a statement. "While Ancora did not engage with Ashland prior to its presentation, Ashland intends to engage with Ancora in a manner consistent with that commitment as part of its ongoing dialogue with investors."

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