Local money manager fights REIT on preferred buyback

By Geert De Lombaerde Posted on November 9, 2009 at 10:07 am

Nashville investment vehicle Southern Strategic Partners says it and other holders of Newcastle Investment Corp. preferred stock aren’t getting a fair deal in the real estate investment trust’s $150 million repurchase plan. Newcastle (Ticker: NCT) has been posting some pretty ugly results of late and is looking to restructure its balance sheet.

“While we could be supportive of a restructuring of Newcastle, we cannot support the current proposal because it fails to recognize the preferred stock’s priority position in the capital structure and does not offer preferred stockholders common stock or warrants to purchase common stock as part of the tender.”

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Tags: activist investors, debt buybacks, Hugh Entrekin, investment management, Newcastle Investment Corp., preferred stock, real estate investment trusts, Southern Strategic Partners LP, stock valuation  

Local insurer’s chairman floated as BofA boss candidate

By Geert De Lombaerde Posted on November 4, 2009 at 9:55 am

Finger Interests, an investment firm critical of Bank of America’s search for a successor to Ken Lewis, has compiled a draft list of executives it says the company should consider to make its process more than “cosmetic.” Among them is Gerald Ford, the chairman and former CEO of Nashville-based auto insurer First Acceptance.

Ford ran Golden State Bancorp before selling it to Citigroup seven years ago for $5.8 billion and building First Acceptance soon after. He also chairs the board of trustees of Southern Methodist University.

Finger says Ford is a “proven entrepreneur” with the chops to handle a turnaround situation, but admits he is a long shot for the BofA job and says First Acceptance’s recent performance — a nine-month loss of $68.3 million on sales of $265 million — isn’t a positive, either.

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Tags: activist investors, Bank of America Corp., banking, executive leadership, Finger Interests Ltd., Gerald J. Ford, property  

The other 10% Gaylord owner

By Geert De Lombaerde Posted on February 6, 2009 at 7:34 am

Columbia Wanger Asset Management, a Chicago-based firm, has filed papers saying it still owns about 10 percent of Gaylord Entertainment’s shares (Ticker: GET). The firm, which manages the $11 billion Columbia Acorn mutual fund (Ticker: ACRNX), doesn’t appear to have a history of activism, but now looks set to play a key role in the tug of war over Gaylord’s board.

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Tags: 5% owners, activist investors, Columbia Wanger Asset Management LP, GAMCO Investors Inc., Gaylord Entertainment Co., hotel management, investment management, Mario Gabelli, Robert B. Rowling, TRT Holdings Inc.  

Bring it on, says Gaylord

By Geert De Lombaerde Posted on January 15, 2009 at 11:04 pm

The hotel company says its leaders “look forward to the opportunity of having their record evaluated” by investors weighing whether to support billionaire and Omni Hotels owner Robert Rowling in his push for management changes.

“TRT’s filing today is the continued attempt by a competitor to control Gaylord Entertainment without paying a premium. Moreover, TRT’s participation on the Gaylord Board would present a serious conflict of interest because TRT owns Omni Hotels, a chain that competes nationwide with Gaylord for meeting business and directly with Gaylord in three of its four principal markets.”

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Tags: 5% owners, activist investors, Gaylord Entertainment Co., hotel management, TRT Holdings Inc.