Need for new blood on the Bwin.Party board
Sunday May 11,2014 : BWIN ACTIVIST INVESTOR GETS A BOOST (Update)
Investment advisers support the need for new blood on the Bwin.Party board.
Two investment advisory firms have voiced support for suggestions by an activist investor that the board of Bwin.Party Digital Entertainment needs an infusion of new blood and thought.
The proposal the election of four new directors to the board comes from Jason Ader's SpringOwl investment company, which holds a 5.2 percent stake in the online betting giant, and has been agitating for change as the company battles with underperformance and a share price that has declined alarmingly.
The current management at Bwin has been fighting off Ader's interference; urging shareholders not to support his bid to vote in four new directors at the company's agm later this month
Investment advisory firm Glass Lews & Company said Friday that the Ader faction had made a compelling case for board level change in its proposals to address poor shareholder returns.
The company seems unimpressed with the counter-arguments so far put forward by Bwin management against the proposals, and by the generous executive remuneration packages recently awarded to top managers despite the weak performance of the company.
Similar views were expressed by ISS, which said that after reviewing the arguments put forward by both sides, it felt that SpringOwl had established that changes at board level were desirable
Taking advantage of the boost, Ader was quick to issue a statement urging shareholders to support his proposal at the agm, whilst Bwin Management stuck to its guns in opposing his initiative.