Steel Bid For Bigger Conseco Stake Rebuffed

May 30 2008 | 2:00am ET

Fresh off its groundbreaking victory in Japan, activist hedge fund Steel Partners has received a rude awakening back at home.

The New York firm on Thursday saw its bid to more than double its stake in insurer Conseco Inc. firmly declined. Carmel, Ind.-based Conseco explained that such a move “is not in the interest of all shareholders” and would reduce its “financial flexibility.”

Steel, which owns a 9.8% stake in Conseco, had wanted to up its stake to as much as 22%. The hedge fund has pushed Conseco to improve its return of equity, arguing that it has been “slow to implement the strategic review process.”

Conseco rejected that claim in a letter to Steel, writing that it took the strategic review seriously, and “we strongly disagree with the suggestions to the contrary.”

Earlier this week, a Steel-backed effort to oust most of the board of directors of Japanese wig maker Aderans Holdings succeeded, the first major victory for an activist hedge fund in Japan.


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.