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 proposal of $639 million, or $11.15 a share, despite a sweetened offer of $12.76 a share 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 Chief Executive Officer Jimmy Levin.
“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.
Shares of Sculptor gained 1.1% Friday to close at $11.75. The stock has lost more than half of its value in the past two years.
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.
(Updates with bid details in third paragraph, stock price in fifth.)
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