bwin.party senior management have spoken out against activist investor SpringOwl’s proposed board nominations.
The investment vehicle, which currently owns 5.25% of bwin.party shareholdings, had criticised the operator’s management, claiming that it needed new strategy and experienced technology managers in order to create future company value and growth. SpringOwl led by US finance and equity analyst Jason Ader, moved to add four of its favoured members into the bwin.party board.
This morning the operator made public that it would reject the nominations after consulting shareholders, recommending a vote against SpringOwl nominations. The operator stated that it had not seen enough insight and strategy into why the board nominations would benefit bwin.party going forward.
A company statement read: “SpringOwl’s plan to add four, possibly five additional directors to the Board has not been supported by any constructive views on the Company’s future, business strategy or how it intends to improve the Group’s prospects,”
It appears that the recent actions by SpringOwl, has strained the relationship between bwin.party and its biggest shareholder. The operator adding that SpringOwl was seeking to by-pass the normal appointment process, “putting at risk the ability of the Board to operate as a unified and effective forum in the best interests of all shareholders and depositary interest holders”.