Activist Jason Ader makes ‘case for change’ at Bwin as he tries to get four aboard
Monday 05 May 2014
US activist investor Jason Ader will today step up his campaign against online betting firm Bwin.Party by publishing a 37-page document attacking its board of directors.
Mr Ader’s SpringOwl emerged as a shareholder in February, and wants to insert four directors on to its board.
SpringOwl, which holds 5.2 per cent of voting rights, will issue its “case for change”, calling for shareholders to vote for the four new directors it will nominate at the annual general meeting on May 22.
Mr Ader says management has overseen a 60 per cent share price fall in less than four years since Partygaming merged with Bwin. He argues there has been a “reduction in shareholder value... as the incumbent board rewarded management with stock grants and removed ties to shareholder returns from its incentive plans”.
He revealed last month that the four directors he is backing are Michael Fertik, a tech expert, Francis Grady, a corporate lawyer, Kalendu Patel, a venture capital investor, and Steven Rittvo, who is an expert on casinos and gaming.
Bwin countered this with a letter urging shareholders to vote against the nominations. It said the appointment of “any of the four nominees to the board” is “not in the best interests of the company”.
Questions have also been raised about the relationship between some of Mr Ader’s nominated directors and his other business interests. But he maintained the directors are independent, and said: “While our efforts to work with the incumbent board towards a constructive solution continue, their lack of action in the face of substantial shareholder losses is frustrating. We believe the contents of this presentation clearly outline the case for change.”
SpringOwl snapped up shares from trusts associated with two of Bwin’s founders, Ruth Parasol DeLeon and Russell DeLeon, who are divorcing.
- 1 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 5 This crazy skiing video will leave you feeling queasy
Paris attacks: Do not call Charlie Hebdo killers 'terrorists', BBC says
Rowan Atkinson to sell £10 million McLaren 'supercar' he crashed into a tree and a lamppost
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Warriors in ancient Iraq suffered Post-Traumatic Stress Disorder more than 3,000 years ago, say researchers
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
British Muslim school children suffering a backlash of abuse following Paris attacks
Greece elections: Syriza and EU on collision course after election win for left-wing party
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...