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Indaba Capital Management, which opposes Stagwell’s revised offer for MDC Partners, criticizes it as a “sweetheart transaction.”
ICM managing partner Derek Schrier dismisses the $100M enhanced bid as “insufficient” and “a small and arbitrary number” when compared to MDC’s $1.8B valuation.
In his June 8 letter to Stagwell CEO Mark Penn, Schrier questions the independence of three directors nominated June 7 by Stagwell for board seats since “they all appear to have professional overlap with you.”
He wrote: “Stagwell seems to be trying to stack the board of directors with your allies and former colleagues. As a potential minority shareholder in the newly combined entity, we find this lack of true independence alarming.”
He urges Stagwell to come up with a credible offer, “rather than continuing to issue press releases ad nauseam and trying to spin shareholders.”
ICM “is ready and willing to engage with you to determine what it will take to earn Indaba’s vote,” wrote Schrier.
MDC’s shareholder meeting is scheduled for June 22.
Stagwell's PR units are SKDKnickerbocker and Sloane & Co, while MDC owns Allison+Partners, Veritas, Hunter and KWT Global.
Joele Frank handles Crinetics Pharmaceuticals as the specialist for treatments for endocrine diseases agrees to get acquired by Vertex Pharmaceuticals in a deal pegged at $8.8B.
Teneo represents Honeywell spin-off Solstice Advanced Materials as it buys Collected Strategies client Element Solutions in a deal pegged at $14.5B.
Dallas-based Throughline Global Advisors advised Principal Mineral as it acquired Isola Group, maker of copper-clad laminates used in printed circuit boards.
oele Frank works for satellite operator Iridium Communications as it gets acquired by space company Rocket Lab in a deal worth $8B.
Uber’s Mike Lucarelli is moving to NXP Semiconductors as senior VP-investor relations.
