Global Med Technologies (OTC: GLOB) is trading well below its intrinsic valuation, according to at least one activist hedge fund. Victory Park Capital principal Richard Levy insisted in a letter to the board that if the equity markets do not reflect the value of the company then it is incumbent upon the board to take action to realize that value for shareholders.

As a result, Victory Park recommended one of two options:

1. Publicly auction the company for sale to a strategic or financial buyer.
2. Pursue a buyout transaction led by Victory Capital.
   

Victory Capital announced that they are prepared to purchase all of the company’s outstanding equity securities that it does not already own for $1.10 per share in cash, subject to completion of limited, confirmatory due diligence and negotiations. Moreover, they are prepared to move quickly to realize this transaction and set a deadline of December 16th for a board response.

Given that this number represents a 22% premium to the current market price for Victory Capital’s offer or even more for a competitive auction, this situation is definitely one worth watching for shareholders and investors comfortable in playing such opportunities.

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Dillard’s Inc. (NYSE: DDS) shares surged higher after an activist investor demanded to see its records. Barington Capital Management demanded to see records of everything from the firm’s plane fleet to business expense reimbursements in a Schedule 13D/A filing with the SEC. Why? According to the filing:

The purpose of this demand is to enable Barington and Clinton to investigate and communicate with the Company’s stockholders regarding matters relating to their mutual interests as stockholders, including, without limitation, the use of corporate assets, the levels and types of compensation, perquisites and benefits provided to directors and executive officers of the Company or related parties, the nature of any family, business or personal relationships between the Company’s executive officers and directors, Board oversight and certain decisions by the Board or its committees regarding the foregoing matters or otherwise affecting the Board, the management or corporate governance of the Company or other interests of stockholders.

This isn't the first time that activist shareholders have targeted Dillard's either. In March, Mitarotonda and Hall requested copies of Dillard's books and records in anticipation of a proxy fight. Luckily, Dillard's eventually reached a deal with the shareholders and added four new Class A directors to its board. What happens now remains to be seen, but shareholders are clearly bullish on the prospects.

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Meadow Valley Corporation (NDAQ: MVCO) shares jumped higher after one of the stock’s biggest shareholders voiced opposition to its planned merger. Carpe Diem Capital Management disclosed a 7.35% ownership stake and demanded that the company not lower the buyout price to anything lower than the proposed $11.25 per share.

The Meadow Valley board is meeting in the coming month to discuss whether or not to accept a lower offer for the company. However, the hedge fund threatened to nominate its own slate of directors to affect an organic turnaround rather than accept a lower offer. These initiatives would include cost cutting, focused management, and various other actions to unlock value.

According to the Schedule 13D/A filing with the SEC:

To reiterate again, we do not want to take over and run Meadow Valley, we want our existing Board to complete the proposed transaction on time and on price. We offered our assistance to the Board in order to give ourselves and other Shareholders comfort that the transaction as contemplated will happen. Your continuing to ignore a major shareholder with more experience and a track record of success has forced us to take the view expressed herein. Only as a last resort, and if the Board cannot consummate the transaction on time or at price, would we take the actions described above. It should also be stated that we would expect, once Shareholders have spoken, to have the full cooperation from the Board and management.

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