Monday May 5,2014 : SPRINGOWL TACKLES BWIN PARTY SHARE VALUE "DESTRUCTION" (Update)
Again urges shareholders to vote in SpringOwl candidate quartet
In the escalating public fight between bwin.party digital entertainment and shareholder SpringOwl, led by Jason Ader, a presentation at savebwinparty.com provides a detailed overview of ways in which SpringOwl believes that the Company's incumbent Board has overseen significant shareholder value destruction (approximately 60 percent decline in share price since the 2010 announcement of the merger of Bwin Interactive Entertainment AG and PartyGaming plc) due to failed execution, failed merger and failed oversight, and stealing money from marketing partners with retro active term changes, which led to party poker being blacklisted from many major online poker sites.
The presentation outlines how SpringOwl intends to reverse the trend and provides biographies of the four new Independent Director candidates that it says will help the Board maximise value to all BPTY shareholders.
Steven M. Rittvo is the latest name to be put forward; he is the founder of The Innovation Group of Companies. Collectively the four candidates could provide expertise in technology, online and land-based gaming, brand marketing and bank regulation to the bwin.party Board if SpringOwl is successful.
A SpringOwl press release provides "summary highlights of the presentation at savebwinparty.com which include:
– Summaries of reduction in shareholder value suffered by BPTY shareholders as the incumbent Board rewarded Management with stock grants and removed ties to shareholder returns from its incentive plans;
– Details of BPTY's substantial underperformance relative to both its peers and relevant stock market indices;
– Company's missteps, that include;
– Overview of the deterioration in financial metrics and key performance indicators under the watch of the incumbent Board;
– Description of the failure to achieve the key objectives of the merger;
– Results of the Company's flawed "Volume to Value" strategy which SpringOwl believes has resulted in a negative feedback circle of lower marketing spend and reductions in revenue / high value customers;
– Evidence of the decline of BPTY's Party Poker brand under the watch of the incumbent Board; and
– Outline of the Company's runaway cost structure and its consequential impact on margins.”
Commenting on SpringOwl's latest parry, Ader said: "We have received incredible support from the BPTY shareholders we have already spoken with and look forward to more conversations as shareholders have the opportunity to add sorely needed skills to the Board of our company. We are confident that each of the Highly-Qualified, Independent Director candidates will play a major part in creating value for all BPTY shareholders.
"While our efforts to work with the incumbent Board towards a constructive solution continue, their lack of action in the face of substantial shareholder losses is frustrating. We believe that the contents of this presentation clearly outline the case for change at BPTY and call on the Board to immediately institute this needed change by seating the four Highly-Qualified Independent Director candidates."