 |
Profile Advisors is handling Whitebox Advisors’ effort to block LG Corp.'s plan to spin off some businesses into a new holding company.
The New York hedge fund claims the scheme fails to address LG’s “most pressing issue, which is the unprecedented discount at which the company trades relative to its assets, and accordingly, inferior return to shareholders.”
Whitebox in its Dec. 14 letter to LG’s board, said the decision to proceed with the spin-off reflects poorly on LG’s corporate governance. “Despite clearly favorable alternatives, the board has unanimously approved a plan that, in our view, sacrifices minority shareholder return in order to resolve a family succession issue.”
Whitebox, which has $5.5B in assets under management, is a long-term shareholder of Korea-based LG.
The hedge fund said it has repeatedly sought to engage LG’s board and management team “in a constructive, private manner over the past two years” and is extremely disappointed that its feedback and viewpoints have been dismissed or ignored.
Profile Advisors’ Greg Marose, Bela Kirpalani and Charlotte Kiaie represent Whitebox.
As capital concentrates among established firms, emerging managers must find new ways to earn investor confidence.
Teneo handles True Food Kitchen as the Scottsdale, AZ-based wellness food restaurant chain that counts Oprah Winfrey as a minority investor files for Chapter 11.
FGS Global and Teneo represent Canada’s billionaire Weston family as its Wittington Investments holding company acquires Boots Group, the 177-year-old UK health & beauty retailer, from Sycamore Partners for $8.9B.
Joele Frank handles C.H. Robinson Worldwide as the freight transportation company acquires RXO Inc. in a stock and cash transaction pegged at $5.8B to create a company with an enterprise value of more than $25B.
Brunswick Group handles France’s Schneider Electric as it acquires Boston’s PTC, maker of engineering software, for $22.6B cash.
