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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.
BGR Group represents Noble Supply and Logistics as it files for Chapter 11 due to a change in its weapons support contract with the Defense Logistics Agency.
C Street Advisory Group is handling the Chapter 11 filing of LIV Golf following the move by Saudi Arabia’s Public Investment Fund to pull the financial plug on the League. (Updated)
Teneo handles Bamboo Insurance Services as the Midvale, UT-based marketer of homeowner policies files a Form S-1 statement with the SEC for an initial public offering.
FTI Consulting handles West Marine as the nation’s leading retailer of marine parts and accessories for boating, fishing and sailing enthusiasts emerges from Chapter 11 bankruptcy.
Throughline Global Advisors represents Principal Mineral as it acquires Conductive Group, manufacturer of advanced materials for the aerospace, telecommunications and electronics sectors.
