The bwin.party board is urging its shareholders to reject resolutions put forward by SpringOwl, the investment vehicle of Jason Ader.
Ader, through SpringOwl, now owns about 5 percent of the company and is seeking to appoint four new members to the company’s board.
The company has written its investors asking them to vote against the resolutions due to the lack of information it has received on the nominees proposed. The company also says the appointments are not in the best interest of the company.
“On the limited information presented to date by SpringOwl on each of the proposed director nominees, and having consulted with many of its leading shareholders and depositary interest holders, the board is recommending that shareholders and depositary interest holders vote against the SpringOwl resolutions,” the letter stated.
SpringOwl was able to nominate one board member under a ‘Relationship Agreement’ reached after it purchased a 6.1% stake in bwin.party. Published reports say the company now controls a little more than 5.2 percent of the company.
SpringOwl, however, has put forth four other nominees—Michael Fertik, a US technology entrepreneur, Francis Grady, founder of a law firm that specializes in U.S. banking regulation, Kalendu Patel, a venture capitalist, and Steven Rittvo, a well-known individual in the U.S. gaming sector.
Company officials said SpringOwl is trying to “bypass” the routine nomination process and is “putting at risk the ability of the board to operate as a unified and effective forum in the best interests of all shareholders and depositary interest holders.”
Meanwhile, Ader continues to make his case that bwin.party is not returning the shareholder value it could.
Ader has launched a new SaveBwinParty.com website which graphically illustrates how far the company’s worth has fallen since bwin and PartyGaming announced intentions to merge. The site also criticizes bwin.party CEO Norbert Teufelberger and other executives for receiving lucrative bonuses.
Ader charges that bwin.party “has suffered from failed execution, a failed merger and failed oversight under the current board of directors.”
