K Capital Calls Out Sun Times Management

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.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR