Monday, 30 May 2016
Last updated 2 days ago
Sep 4 2007 | 2:35pm ET
Boston-based K Capital Partners has a few choice words for the management of the Sun-Times Media Group.
For starters, the activist hedge fund said the company, which owns the Chicago Sun-Times and a number of community newspapers in the Chicago area, should hire a strategic advisor and put itself up for sale, according to a Aug. 30 Securities and Exchange Commission filling.
Also, the hedge fund called for the resignation of Raymond Seitz and Gordon Parish as chairman and member of the board, respectively, because Seitz’s “personal travel schedule and other interests do not allow him to provide present and active leadership” and “Paris was CEO of the Company during its deterioration and during its costly decision to invest in Canadian commercial paper.”
K Capital also said the company should appoint two institutional shareholders to its board so that the board has greater shareholder representation. In addition, the company should execute a share buyback with the remaining unused capacity under the existing buyback program, which the firm believes to be in excess of $20 million. K capital said it believes “a twenty million dollar buyback is very conservative and prudent given the Company's potential financial liabilities and operational requirements.”
K Capital currently owns a 9.9% stake in Sun-Times Media Group.