The founder of activist investor TCS Capital Management rejected Angie’s List Inc.’s
board seat offer and continued to push for a combination with IAC/InterActiveCorp’s
In a letter to the Angie’s List board, Eric Semler said the board seat offer “seems futile in light of the board’s demand for onerous standstill provisions and its refusal to explore whether shareholder value can be maximized in a negotiated transaction.”
An Angie’s List spokeswoman said the company regrets that Semler declined to join the board. “Of course our invitation came with the expectation that Mr. Semler would sign a customary standstill agreement,” she said.
Earlier this month, Angie’s List said it wouldn’t pursue an unsolicited buyout offer from IAC because it undervalued the company, which wants an opportunity to develop and enact a new growth plan before considering potential mergers. IAC on Nov. 11 had made public a $512 million cash offer for Angie’s List, and said it also was willing to consider combining Angie’s List with its HomeAdvisor business through a stock-for-stock exchange.
In the letter Monday, Semler — who with TCS Capital holds a 10.7% stake in Angie’s List — warned of ignoring IAC and shareholder demands for a sale in favor of making a “risky bet” on an “unformed” growth plan. He also said the board is being shortsighted in putting undue faith in its new LeadFeed product launched two weeks ago, which funnels Angie’s List site visitors’ service requests to service providers who can then reach out to customers directly.
An extended version of this report appears at WSJ.com.
View more information: https://www.marketwatch.com/story/angies-list-should-sell-to-iac-top-investor-says-2015-11-30