Orange Capital's Letter To Macerich ($MAC) Shareholders: Talk To $SPG
Orange Capital put out a letter to Macerich ($MAC) shareholders yesterday. The activist and fellow activist Land & Buildings are pushing for the mall REIT to end its litigation with L&B and allow shareholders to vote for a new slate of directors for the upcoming annual meeting.
As well, the activist duo wants Macerich to create a special committee to "explore strategic alternatives and maximize shareholder value, including engagement with Simon Property Group."
Quotes from the activists. Here are Orange Capital's thoughts:
“We believe that Macerich continues its pattern of trampling on the rights of its shareholders. The Macerich Board appears to us to somehow believe that litigating on the validity of the L&B nominations, as opposed to allowing shareholders to exercise their rights as owners of the REIT, is in the best interests of shareholders. We are convinced that shareholders share our views on the Simon transaction and that there is an urgent need for change at Macerich.”
And L&B's thoughts:
“In our view, the decision to stagger the board and adopt a poison pill without a shareholder vote was a disturbing and seemingly desperate attempt to entrench management. Moreover, we believe there is absolutely no excuse to sue a shareholder in an effort to further disenfranchise investors at the upcoming at the annual meeting on May 28th 2015.”