Investment idea generation.

Blog

Our thoughts.

Wynnefield Capital gets in on the OM Group bashing

Wynnefield Capital has taken to task OM Gropu over its Apollo Group buyout. They aren't the first - recall that SpringOwl pushed back last week. 

Here are Wynnefield's key thoughts from its recent letter. See the full letter here.

  • Wynnefield is the largest investor - has 20% of AUM in the company
  • To do a sale while amidst a transition agreement with FrontFour Capital, where they were putting a board member on the board is absurd
  • The company did not Q&A when holding a conference call to inform investors of the buyout details
  • The CEO is getting a hefty incentive package with the deal
  • Wynnefield wants a true go shop effort and effectively marketing of the company to other buyers
  • It also wants institutional investors to withhold votes for the current board