Bwin.Party Board Shakeup Begins as Bodner Exits: Shares Plummet 4 Percent
Non-executive directors of Bwin.party Manfred Bodner and Helmut Kern will be stepping down at the conclusion of the forthcoming annual general meeting on Thursday of next week, thus signaling the start of what is likely to be a major board shakeup.
The company said that due to "the increasing complexity of the group's business and regulatory environment, combined with the length of service of a number of the non-executive directors and the need to prevent the board from becoming too large and unwieldy," it had decided to search for three new independent directors.
That “complexity” relates to activist investor Jason Ader demanding changes occur on the board.
His group, SpringOwl, wants to nominate four additional directors to the board of Bwin.party in a bid to change the way the company is run.
"SpringOwl's proposal to increase the size of the board to 13 or 14 members would therefore result in a more unwieldy decision-making forum as well as add extra cost to the company," the company said last month.
Overall Ader says he is supporitve of Bwin.party actions but urges support for two of its nominees to board, adding that Michael Fertik and Kal Patel would be valued additions to the board Source text for Eikon.
SpringOwl acquired a 5.25 percent stake in Bwin.Party in February from the founders of PartyGaming, Ruth Parasol and Russ DeLeon, who sold their 14.3 percent stake as part of a divorce settlement.
"While we are supportive of the actions announced today and the confirmation by BWIN that the change - which we have been calling for on the BWIN Board - is needed, we find the timing of the announcement curious with the AGM just a few days away," Ader said.
“We believe that this announcement is the direct consequence of the overwhelming support we have received from our fellow BWIN shareholders for the call for board change that we have made. We appreciate the broad support that our calls for improvement and proposed director candidates have received. Based on this input, we believe that shareholders agree that Mr. Michael Fertik and Mr. Kal Patel would be valued additions to the BWIN Board and we urge shareholders to vote FOR Messrs. Fertik (Resolution19) and Patel (Resolution 21) today.
"We look forward to engaging in more constructive dialogue with Mr. Yea and helping to build a better BWIN for the benefit of all shareholders."
IN GENERAL, ALL FOUR NOMINEES ARE STILL UP, But sources tell Gambling 911 that Fertik and Patel are most likely to be chosen as they are most in line with the company direction.
Deputy Chairman Rod Perry all announced he will be retiring once a successor has been selected
Bwin.party shares were down 4.0% at 113.90 pence Friday morning.
- Aaron Goldstein, Gambling911.com
