Investor Complains SBS' Alarcon Blocking Deal Talks
March 10, 2008 at 5:40 AM (PT)
SPANISH BROADCASTING SYSTEM Chairman/President/CEO RAUL ALARCON JR. comes under fire from investor DISCOVERY GROUP, which filed a letter with the SEC that it had sent to SBS calling for the board to consider going private, selling the company, or adopting "modern corporate governance practices" like equal shareholder voting rights and splitting the Chairman and CEO jobs.
DISCOVERY's Managing Partner DANIEL DONOGHUE wrote, "we recently presented to management several tangible, value-restoring opportunities that we uncovered, including the potential for a highly-strategic industry merger. Management has been unresponsive to both our concerns and these important and favorable opportunities for public shareholders."
DONOGHUE said that "it is generally understood in the media industry that Mr. ALARCON will not consider any transaction that requires him to relinquish any degree of control, regardless of the merits of the deal or the implications for public shareholders." The letter cites "direct knowledge of an important public media company" looking to do a deal for SBS but was rebuffed when after initial interest, ALARCON allegedly refused to talk about the proposal.