Activist Funds Look To Unwind Film Processing Concern

Feb 9 2007 | 12:11pm ET

Here’s looking at you, kid: U.S.-based hedge funds K Capital Partners and M2 Capital Management have snapped up more than 16% of Europe's largest film processing company, Cewe Color, and are seeking the ouster of CEO Rolf Hollander, according to German magazine Der Spiegel. The Boston- and New York-based shops, which are putting aside their differences in sports-related matters, are calling for a new board of directors and a special dividend of $6.50 per share for all shareholders, to be debt-financed by the company.

In a letter to shareholders dated Feb. 2, Cewe snapped back at the M2 writing, “The hedge fund confronted us with numerous reproaches in a letter that in the opinion of management are not justified and primarily serve to conceal the actual intent of M2: For some time now, the hedge fund has in several letters and conversations been repeatedly demanding a debt-financed special dividend in the amount of €37 million to €120 million—against the background of shareholders’ equity of €113 million.”

“M2 Capital has threatened to have a special shareholders’ meeting convened exclusively for the purpose of achieving this goal. We have not, however, yielded to this pressure and will in the future also not allow ourselves to be put under pressure.”


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note