Fisher Communications Letter To Shareholders Rips FrontFour
April 21, 2011 at 4:39 PM (PT)
The management of FISHER COMMUNICATIONS, INC. sent a letter to shareholders TODAY (4/21) criticizing dissident shareholder FRONTFOUR CAPITAL GROUP's move to nominate its own slate of directors to gain control of FISHER's operations.
The letter calls FRONTFOUR's action a "brazen attempt" to gain control without paying a control premium to other shareholders, and rips FRONTFOUR's DAVID LORBER, a director of FISHER since 2009, for saying the board should "demand accountability" from management while at the same time voting in favor of rewarding CEO COLLEEN BROWN for exceeding performance goals and voting with the board against declassifying itself, contradicting his position as stated to shareholders. In addition, the letter challenges LORBER's moves to "excuse" conflicts of interests between his duties on FISHER's board and for HUNTINGDON REAL ESTATE INVESTMENT TRUST in the latter's "unsolicited low-ball bid" for FISHER.
The FISHER management also focuses on the FRONTFOUR slate's lack of broadcasting experience and ties to the defunct PIRATE CAPITAL hedge fund, suggesting that the former PIRATE partners, including LORBER, are planning "to conduct an auction for purposes of selling FISHER to the highest bidder at a price that may be a low value for the Company or its assets," resulting in "an immediate significant short-term gain to FRONTFOUR and Mr. LORBER. Given his actions and likely motives, can you really trust Mr. LORBER's advice?"
The letter summarizes FISHER's performance in recent years as outperforming the industry and successfully repositioning the firm.