This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Audley Capital And Walter Energy In Proxy Fight

NEW YORK (AP) â¿¿ Audley Capital Advisors LLP said Monday that it can significantly improve Walter Energy Inc.'s performance and wants to replace half of the metallurgic coal company's board. But a proxy fight is brewing after Walter fired back in a letter to shareholders that the British hedge fund has made "serious omissions" in its proxy statement.

Audley is asking shareholders to vote for its five nominees for the board at the annual shareholders meeting in April. The company said it believes that Walter's inherent value is not reflected in its current share price and its board nominees possess the mining and public company experience necessary to unlock that potential.

The hedge fund urged Walter in 2011 to consider a sale of the business and later suggested other smaller strategic changes, such as spinning off its U.K. coal operations. Audley said Walter's board and management were not forthcoming in discussions.

It said in a letter to shareholders that the board "has been dominated for too long by a clique of long-time directors who have not worked in the best interest of stockholders".

Walter's Chairman Michael T. Tokarz and CEO and Director Walter J. Scheller III countered in a letter that Audley's campaign to replace five of its nine independent directors has a number of "troubling aspects". They said the firm's proxy statement contains serious omissions about the background and history of its nominees, including unmentioned insider trading charges, deficient governance and misrepresentations of experience.

Walter said its board reviewed the slate of nominees and determined that individually and collectively they lack the qualifications and experience to be suitable candidates. It also said the company is already focused on improving shareholder value by lowering debt, expenses and finding alternatives for its underperforming assets.

Walter also noted that Audley holds less than one-tenth of one percent of the company's shares, and only one individual on its slate of nominees has ownership of any shares. They said this is not a sign that it is investment in shareholders' best interests.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs