Och Asks Sculptor to Free Bidders from Non-Disclosure Agreements

Dan Och and four other former executives of Sculptor Capital Management are again demanding the hedge fund firm release them and bidders for the company from non-disclosure agreements that prevent them from speaking publicly.

(Bloomberg) — Dan Och and four other former executives of Sculptor Capital Management are again demanding the hedge fund firm release them and bidders for the company from non-disclosure agreements that prevent them from speaking publicly. 

The move is the latest in a heated feud between Och and Sculptor Capital, the firm he founded. In November, they resolved a legal dispute and Sculptor formed a special committee to explore potential transactions. Rithm Capital Corp. agreed in July to buy Sculptor, but Och has questioned whether better options from other bidders were available.

“We cannot understand how the special committee could possibly conclude that it is in the best interests of shareholders to deter us from communicating freely with such bidders to improve their bids,” the group wrote in a letter Tuesday.  

Och said he’s asking Sculptor’s special committee to waive NDA restrictions on his group so they can negotiate with third parties. He and the other former executives made a similar request on Aug. 22.

“If it does not, then we reserve all rights, including litigation, to not only stop the special committee from misappropriating value from shareholders for the benefit of current management, but also to enforce the rights of the public shareholders to secure a superior proposal,” Och and the others said in the letter.

The group wants “Bidder J” — a coalition of Boaz Weinstein, Bill Ackman, Jeff Yass and Marc Lasry — as well as an “Bidder H,” who’s identity hasn’t been made public, to be freed from their restrictions as well.  

Och, who’s among Sculptor’s largest shareholders, said he and other founding partners were previously allowed to negotiate with Rithm Capital. 

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