Dan Loeb wrote a letter last week. This is not unusual. Dan Loeb likes writing letters. Mean ones, particularly. And this is a pretty mean one, accusing its target of “wasting resources on court actions” and “an incorrect understanding of how companies work,” as well as allegations of “pursuing its own agenda at the expense of all shareholders.”
Pretty standard stuff from the Third Point chief, really. But Loeb isn’t trying to browbeat the object of his ire into blowing up his company or firing his board or returning capital to shareholders. No, what Loeb wants from Asset Value Investors is to be left alone—for AVI is another activist investor, and it thinks Loeb’s publicly-listed hedge fund should do some or all of those things.
Irony, thy name is Daniel!
Loeb’s company gave some ground, announcing a new scheme meant to pacify investors. Third Point said shareholder would once again be given the opportunity to trade in shares in the UK vehicle for its Cayman Islands-based Master Fund. The scheme was first announced earlier this year but the second iteration in 2022 will offer a better price to trade at…. Investors will be given the opportunity to discuss AVI’s proposals at December’s meeting but will not be allowed to vote on it.
Why, that’s just the kind of low-grade sop Dan Loeb usually sneers at when offered to him. But before you go throwing around the “h”-word, like AVI’s Tom Treanor did, you should know it really gets under his skin.
Loeb’s company accused AVI of lobbying Third Point simply “as a means of drawing attention to itself, albeit through novel legal arguments and an incorrect understanding of how companies work”. Third Point said AVI itself “trades at a persistent discount [and] has not itself adopted discount-control mechanisms similar to those AVI advocates for the Company.”
Ooooooh, burn! This annual meeting is all we want for Hannukah and Christmas combined.
Billionaire Dan Loeb’s Third Point smacks down activist targeting UK vehicle [Evening Standard via Yahoo!]
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