Post by bytejuggler on Jun 3, 2014 16:29:45 GMT
I read 2 articles today regarding ARCP, American Realty Capital, which has more than just passing analogies with Range and its' relationship to sharedholders. The first article is here: seekingalpha.com/news/1782273-activist-rumblings-at-american-capital
First article key points:
Substituting names and values, this could've just as well been written by range shareholders to RRL. This I also want to emphasize is from a 2.4% shareholder to the company.
Now the response article: seekingalpha.com/pr/10106103-american-realty-capital-properties-comments-on-letter-from-marcato-capital-management?app=n
Key points:
Now, the answer isn't really very satisfying, but at least they acknowledge the communications and say that they value the input, unlike the experience RIG and other investors have had with RRL and/or Buchanan's.
Anyway, I just found it interesting how similar sounding of the shenanigans were at ARCP, and how its shareholders were also taking the company to task when they felt justified in doing so. Thought you guys might find the comparison interesting...
First article key points:
- "The Company needs to pause on large-scale transactions and rebuild its credibility the only way it can: by solidly executing its organic operations for an extended period of time," writes Marcato Capital in a letter to American Realty Capital (ARCP) lead independent director Leslie Michelson. Marcato owns about 2.4% of the company.
- Equity sale: "We were extremely frustrated by the Company's recent equity issuance at $12 per share. We found it disturbing that the Company would issue equity after repeatedly stating publicly that it had no intention to do so, and at a price that it has repeatedly acknowledged undervalues the shares."
- Deals: "ARCP's rapid acquisitions ... have made the Company's financials complicated and difficult to understand ... The best evidence of this is that the Company itself seemingly cannot keep its own financials straight."
Substituting names and values, this could've just as well been written by range shareholders to RRL. This I also want to emphasize is from a 2.4% shareholder to the company.
Now the response article: seekingalpha.com/pr/10106103-american-realty-capital-properties-comments-on-letter-from-marcato-capital-management?app=n
Key points:
- "ARCP welcomes open communications with its stockholders and values their input toward the shared goal of enhancing value," says the company, responding to a letter from investor Marcato capital, questioning some recent moves.
- "Our Board of Directors and management team regularly review the Company's strategic priorities and opportunities, including deleveraging, capital allocation, and assess a variety of strategic options."
Now, the answer isn't really very satisfying, but at least they acknowledge the communications and say that they value the input, unlike the experience RIG and other investors have had with RRL and/or Buchanan's.
Anyway, I just found it interesting how similar sounding of the shenanigans were at ARCP, and how its shareholders were also taking the company to task when they felt justified in doing so. Thought you guys might find the comparison interesting...
