Jason Ader continues to butt heads with bwin.party officials, this time going to the internet to outline a “case for change” at the company.
Ader, through his SpringOwl investment vehicle, acquired about six percent of the company earlier this year, but now owns just above five percent.
The presentation on the case for change was made on SprinOwl’s website savebwinparty. The presentation outlines for shareholders how bwin.party’s current board has destroyed shareholder value at the company, according to SpringOwl.
The presentation maintains that bwin.party has shown an about 60 percent decline in share price since the 2010 announcement of the merger of Bwin Interactive Entertainment AG and PartyGaming.
The site points to “Failed execution, failed merger and failed oversight.”
Highlights, according to published reports, include:
Summaries of reduction in shareholder value suffered by BPTY shareholders.
Details of BPTY’s substantial underperformance relative to both its peers and relevant stock market indices as well as valuation metrics, which SpringOwl believes, are indicative of the company’s missteps.
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 and reductions in revenue/high value customers.
Evidence of the decline of BPTY’s Party Poker brand under the watch of the incumbent board.
Outline of the company’s runaway cost structure and its consequential impact on margins.
“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,” Ader said in a statement. “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,” Ader said. “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.”
SpringOwl urged shareholders to vote to install four new board members put forth by SpringOwl. The four nominees are Michael Fertik, Steven Rittvo, Francis Grady and Kalendu Patel. Three of the four nominees have previous links with Ader.
Bwin officials have urged shareholders to vote against the nominations.
