Ex-Sculptor CEO Shafir Opposes Sale of Hedge Fund Firm to Rithm

Former Sculptor Capital Management Inc. chief Rob Shafir, one of firm’s largest shareholders, is opposing its proposed sale to Rithm Capital Corp. because he said he views a competing bid as more attractive.

(Bloomberg) — Former Sculptor Capital Management Inc. chief Rob Shafir, one of firm’s largest shareholders, is opposing its proposed sale to Rithm Capital Corp. because he said he views a competing bid as more attractive.

A rival offer from a group including Boaz Weinstein, Bill Ackman, Marc Lasry and Jeff Yass “is clearly superior,” Shafir wrote to the special committee advising Sculptor’s board, according to a statement Thursday.

The hedge fund firm previously said it favors Rithm’s $639 million proposal despite a sweetened offer from a group the company has dubbed Bidder J. It defended that position in part by citing the risk that clients won’t accept Bidder J’s replacement of Jimmy Levin as chief investment officer.

“It is not credible” that Bidder J wouldn’t be acceptable to clients, according to the letter, which also dismissed concerns the group lacks funding to complete the transaction.

Read more: Sculptor says Weinstein raised offer, still prefers Rithm

Shafir owns 6.2% of the firm’s Class A common stock, and is the second-largest shareholder behind Levin, whose stake was more than twice as large as of July, data compiled by Bloomberg show.

“Your fiduciary duties require you to maximize value for Sculptor’s shareholders,” he wrote.

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