Somerset Capital Releases Its Letter to Red Lion Hotel's Board, Calls For Action
(firmenpresse) - NEW YORK, NEW YORK -- (Marketwire) -- 03/26/12 -- Somerset Capital Management ("Somerset") has released a follow up to comments it made on the Red Lion Hotel fourth quarter conference call. Somerset sent a letter to members of the company's Board of Directors on March 8, 2012. In the letter, we voiced our belief that, by refusing to enter into a formal process for the sale or liquidation of the company, the board was acting contrary to the best interests of their shareholders.
Somerset subsequently had the opportunity to discuss its concerns, as well as any plans the company had to address them, with senior management. Management was unable to give Somerset a satisfactory explanation that would justify, in our opinion, the board's continued intransigence. As a result, we are releasing a copy of our letter to management because we remain deeply concerned about the ultimate cost to shareholders of the board refusing to explore an official process to sell or liquidate the company.
We want to make the following recommendations public:
Should the above individuals fail to act on the above, we would call on Columbia Pacific to form a coalition with the required votes to call a special meeting at which shareholders could remove any or all of the aforementioned individuals, or commence a fair and formal tender offer for the company. Should shareholders choose the latter course, we would request any tender offer include a "Go shop" provision, along with a pledge to support any clearly superior offer the company's investment banker may be able to develop.
The time for game playing on the part of the Board of Directors and Columbia Pacific has passed. Columbia Pacific has indicated to shareholders that there are buyers for the company and/or its assets at prices that we would likely deem acceptable. It is time for management to let the company's shareholders decide.
Our letter to the directors of Red Lion Hotels on March 8, 2012 read as follows:
About Somerset
Somerset Capital Management is a New York-based money manager founded in 1999. It is a registered investment advisor and its flagship fund is Somerset Capital Partners, LP. Its principals have over 80 years combined investment experience.
Contacts:
Somerset Capital Management
Ross Taylor
212-931-6588
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Datum: 26.03.2012 - 20:43 Uhr
Sprache: Deutsch
News-ID 128544
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NEW YORK, NEW YORK
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Commercial & Investment Banking
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