|
|
#1
09-07-2006, 04:04 PM
|
|||
|
|||
Dan Loeb\'s greatest hits
Sunterra -
"Indeed, as the largest owner of the Company, we have one simple and explicit message to deliver to the Board: WE DEMAND THAT YOU DEVOTE YOUR FULL RESOURCES AND ATTENTION TO SELLING SUNTERRA - EITHER IN WHOLE OR IN ITS TWO COMPONENT PIECES - AS EXPEDITIOUSLY AS POSSIBLE... Moreover, for the many reasons outlined by Robert L. Chapman, Jr. in his letter to you, as well as others uncovered in our due diligence (wherein Mr. Weissenborn and Mackinac Partners were both referred to several times as "lightweights" - which captures the essence of what we heard), we have grave doubts as to whether Mr. Weissenborn should be involved with Sunterra at all... Having conducted a preliminary investigation into Mr. Maib's background and current circumstances, we understand why his apparently sketchy employment history was left out. Especially cautionary to us is his disastrous short stint as COO of Borland in 1994 - a position from which he resigned just one week after emphatically stating that he had no intention of doing so... More important, we anxiously await your naming of an investment banker later this month - and the mandate that such banker is given by the Board. An independent report, written earlier this month by a respected brokerage firm, stated: "[Sunterra's management and board] have proven themselves to be inept at managing the complexities of a public company. We view the sale of the company as the only logical step at this point." So do we.' http://www.sec.gov/Archives/edgar/da...8/t2774169.txt Star Gas: 'By this clearly stated policy, how is it possible that you selected your elderly 78-year old mom to serve on the Company's Board of Directors and as a full-time employee providing employee and unitholder services? We further wonder under what theory of corporate governance does one's mom sit on a Company board. Should you be found derelict in the performance of your executive duties, as we believe is the case, we do not believe your mom is the right person to fire you from your job. We are concerned that you have placed your greed and desire to supplement your family income - through the director's fees of $27,000 and your mom's $199,000 base salary ...We insist that your mom resign immediately from the Company's board of directors.' Salton: http://www.sec.gov/Archives/edgar/da...0/t2775852.txt Salton (SFP: news, chart, profile) is no stranger to long-time readers of this column. CEO Leonhard Dreimann and CFO William Rue would certainly tie if there were an award for most arrogant execs. (At least based on my experience with them.) Third Point Partners CEO (and long-time rabble-rouser) Dan Loeb had tried to stir change by becoming one of the company's largest holders. But even Loeb has had enough -- and has decided to sell his stock. He told Dreimann as much in a parting-is-such-sweet-sorrow letter that is likely to go down as a Loeb classic. "The final decision to exit the position was not based on your incompetence, arrogance, and innumerable short comings alone," Loeb wrote. "It was my conclusion that that the company's board is governed by a toothless crew of cronies or pathetically weak individuals who I can only conclude are in way over their heads and unable to take appropriate action." Loeb continues to hold Salton debentures and closed the letter by telling Dreimann that if the company ever goes into a restructuring that can't be resolved out of court, he looks forward "to personally dedicating my considerable energy to serving on the creditors committee and seeking your ouster at that time." the famous 'inexplicably insouciant' letter. 'From: Alan Lewis To: Daniel Loeb March 22, 2005 Daniel, thanks for calling earlier today. Enclosed is my CV for your review. I look forward to following up with you when you have more time. Best regards, Alan. ---------------------- From: Daniel Loeb To: Alan Lewis March 28, 2005 What are your three best current European ideas? ---------------------- From: Alan Lewis To: Daniel Loeb March 28, 2005 Daniel, I am sorry but it does not interest me to move forward in this way. If you wish to have a proper discussion about what you are looking to accomplish in Europe, and see how I might fit in, fine. Lesson One of dealing in Europe: Business is not conducted in the same informal manner as in the U.S. Best regards, Alan. ---------------------- From: Daniel Loeb To: Alan Lewis March 28, 2005 One idea would suffice. We are an aggressive, performance-oriented fund looking for bloodthirsty competitive individuals, who show initiative and drive, to make outstanding investments. This is why I have built Third Point into a $3bn (£1.6bn) fund with average net returns of 30% over 10 years. We find most Brits are a bit set in their ways and prefer to knock back a pint at the pub and go shooting on weekends rather than work hard. Lifestyle choices are important, and knowing one's limitations with respect to dealing in a competitive environment is too. That is Lesson One at my shop. It is good that we learned about this incompatibility early in the process, and I wish you all the best in your career in traditional fund management. ---------------------- From: Alan Lewis To: Daniel Loeb March 28, 2005 Daniel, I guess your reputation is proved correct. I have not been in traditional fund management for more than 11 years. I did not achieve the success I have by knocking back a pint, as you say. I am aggressive, and I do love this business. I am half-American and half-French, and having spent more than half my life on this side of the pond I think I know a little something about how one conducts business in the U.K. and Europe. There are many opportunities in the U.K. and Europe, shareholder regard is only beginning to be accepted and understood. However, if you come here and handle it in the same brash way you have in the U.S., I guarantee you will fail. Things are done differently here. Yes, place in society still matters, where one went to school etc. It will take tact and patience (traits you obviously do not have) to succeed in this arena. Good luck! Alan. ---------------------- From: Daniel Loeb To: Alan Lewis March 28, 2005 Well, you will have plenty of time to discuss your "place in society" with the other fellows at the club. I love the idea of a French/English unemployed guy, whose fund just blew up, telling me that I am going to fail. At Third Point, like the financial markets in general, "one's place in society" does not matter at all. We are a bunch of scrappy guys from diverse backgrounds (Jewish, Muslim, Hindu etc.) who enjoy outwitting pompous asses, like yourself, in financial markets globally. Your "inexplicable insouciance" and disrespect is fascinating; it must be a French/English aristocratic thing. I will be following your "career" with great interest. I have copied Patrick so that he can introduce you to people who might be a better fit. There must be an insurance company or mutual fund out there for you. Dan Loeb. ---------------------- From: Alan Lewis To: Daniel Loeb March 28, 2005 Hubris. ---------------------- From: Daniel Loeb To: Alan Lewis March 28, 2005 Laziness.' 
|
|
#4
09-14-2006, 12:16 AM
|
|||
|
|||
|
Re: Dan Loeb\'s greatest hits
"I suppose that if Third Point were to have a website, rather than the feel-good background of two shaking hands, we would likely depict a well-worn boot colliding with the backside of an incompetent manager."
loeb is a baller. looks like he is currently having some success with first data corp.
|
 |
|
|
Linear Mode
