Cibelli’s Marathon Partners creates Activist Forum to attack Dover Motorsports
|October 14th, 2009||
|Contributed by: Hedge Fund Solutions LLC|
|From this week’s Hedge Fund Solutions Catalyst Equity Research Report , we are highlighting Mario Cibelli’s activist activities against Dover Motorsports (NYSE: DVD), a motorsports promotion company. Cibelli Capital Management’s Marathon Partners LP hedge fund, which holds a 16.2% in Dover, has been attacking the company’s management since early 2007. |
Earlier this year, Mario J. Gabelli’s GAMCO Asset Management also expressed its frustrations with the company (see below for more details). In its latest filing, Cibelli’s Marathon Partners revealed that it had setup an online “Shareholder Forum” to unite shareholders.
On October 17 Marathon Capital announced the initiation of a “Shareholder Forum” to be conducted at www.ShareholderForum.com/DVD. The purpose of the forum is to “address issues of importance to Dover Motorsports’ stakeholders.”
DVD was previously covered in the May 15, March 6 2009, December 12, September 19, June 20, May 30, May 2 2008 and July 20 2007 Catalyst Research Reports, which highlighted Marathon Capital’s announcement that they had urged management to initiate a sale process. On September 17 Marathon sent a letter demanding DVD sell their racetrack assets in the Midwest US which could result in an increased stock price to around $7.50 to $8.50 per share.
On March 2 2009 Gamco Investors (7.7% shareholder) sent a letter to DVD announcing their intention to vote their shares in favor of a proposal submitted by Marathon to eliminate the poison pill. On May 12 Marathon sent a letter to DVD’s board regarding: (i) the voting results of the shareholder proposal and the re-election of three Board Members at the recent annual meeting; (ii) the Company's ban on the question and answer segment on its quarterly earnings conference calls; and (iii) certain flawed aspects of the Company's executive compensation plan. In the letter Marathon states that 65.2% of “non-insider” voters withheld their votes for the election of directors at the annual meeting. In addition, Marathon claims that over 90% of non-insiders voted to remove the company’s poison pill.
Hedge Fund Solutions (HFS) is a Philadelphia-based investment research and strategy consulting firm focused on providing substantive solutions on issues relating to shareholder activism. The Firm has an unparalleled depth of knowledge on activist investing and has become the trusted advisers to numerous institutional investors, CEOs and board members worldwide. For more information on Hedge Fund Solutions or to sign-up for their Catalyst Equity Research Reports, please click here.
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