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Reevemark represents Carronade Capital Management as it plans a proxy fight at the December annual meeting of Cannae Holdings, the sports and leisure group holding company.
Billionaire Bill Foley founded and chairs Cannae, owner of the NHL Vegas Golden Knights, English premier soccer team AFC Bournemouth, Scotland’s Hibernian, and France’s FC Lorient.
Carronade says Cannae needs independent directors to unlock the company’s shareholder value, saying that since the current board is “completely intertwined with the founder it is virtually impossible for that board to be objective and independent."
It claims “board and management have let the value of our shares erode while prioritizing their own compensation, amounting to hundreds of millions of dollars over their fiduciary duties to shareholders.”
Carronade's director-nominees will “reinvigorate a stagnant company that is disconnected from the value of its underlying assets.”
The Financial Times reports that Cannae trades at a 33 per cent discount to its net asset value, according to its investor presentation. Its share price fell almost 50 percent during the past five years despite the robust market. The Las Vegas-based company reported a 6.7 percent decline in 2Q revenues to $213.4M. Operating loss grew to $82.3M from $63.6M.
Carronade holds a 6.1 percent stake in Cannae. Founded in 2019 by Elliott Management Corp. veteran Dan Gropper, Carronade has 17 staffers.
Reevemark’s Paul Caminiti and Jacqueline Zuhse handle Carronade.
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