TCS Capital Rejects Angie's List Board Seat Offer
November 30 2015 - 11:30AM
Dow Jones News
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 HomeAdvisor.
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 spokesperson wasn't immediately available for
comment.
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, in a proposed deal that would combine the services
marketplace and consumer-review site with Internet brands such as
About.com and Vimeo. IAC 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, Mr. 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.
"As a longtime shareholder of ANGI even before it was a public
company, I can assure you that this is not the first time the board
and senior management have become prematurely and unduly excited
about a new product and plan, " Mr. Semler wrote in the letter.
Shares of Angie's List were recently up a penny at $10.77.
Write to Anne Steele at Anne.Steele@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 30, 2015 11:15 ET (16:15 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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