Gyrodyne Corporation
(NDAQ:GYRO) directors may face some competition at the company's next
annual meeting. Full Value Partners announced in a Schedule 13D/A
filing their intention to solicit proxies in an attempt to takeover the
company's board during the next annual meeting. The hedge fund said
that it plans to eliminate the company's poison pill and work to unlock
value in the company if successful.
Full Value Partners noted
that during the last annual meeting, comments were made that the
company's shares were worth upwards of $200/share; however, management
has clearly done very little to close the valuation gap as shares
continue to trade at just $50/share. Clearly, changes need to be made,
but with a poison pill in place, it may be difficult to remove
management or board members.
Many investors are hoping that the
hedge fund can successfully takeover the company as it would likely
mean changes to unlock value and improve cost structure. Despite the
poison pill, the hedge fund controls over 17% of the company, which
makes it a viable contender during any elections. If elected, we could
see a change of control transaction or recapitalization in order to
unlock value much more quickly. This makes GYRO a stock
worth watching!
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