Wilshire Enterprises (AMEX:WOC) shares remained even in early trading today after Bulldog Investors disclosed a 14.87% stake in the company and announced their intent to nominate two of their own candidates to the company's board of directors. The activist hedge fund also said that it plans to propose that WOC's investment banker immediately conduct an auction to sell the company to the highest bidder. Bulldog believes that the company's shares are undervalued and hopes to unlock shareholder value through a sale process. The only major obstacle is a poison pill that the company has in place to prevent a takeover; however, Bulldog is likely hoping to get this removed by shareholder vote. Given their nearly 15% stake in the company, this might be possible.

The other major obstacle may be finding a buyer for the company. Wilshire owns and invests in multi-family, office rentals, and retail space real estate properties in Arizona, Texas, Florida, Georgia and New Jersey. The company also maintains investments in marketable securities, which are classified as available for sale. Given the strength of the commercial real estate market recently, this company could be in a good position to sell itself to unlock value. Whether or not this actually happens depends on whether or not the hedge fund can remove the company's poison pill and whether or not the investment bank is successful in locating a buyer. Either way, this is definitely a stock that is worth keeping an eye on!

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