Unlike Carl “Permanent Capital, Three Seats on Your Fucking Board” Icahn’s approach to pressuring management to make change, which entails taking a gigantic stake and then making a public mockery of his target, Starboard takes a more docile approach.
They own just 1% of Macy’s shares, yet still believe that stake gives them the right to speak on behalf of other shareholders, to let management know how awful they are and how spinning off the real estate arm could “unlock” secret and hidden shareholder value.
Starboard said spinning off Macy’s real-estate assets could “create meaningful and lasting value for shareholders,” the newspaper reported, citing the letter it reviewed.
The letter suggested two separate joint ventures, one for Macy’s landmark properties like Herald Square and a second for its hundreds of mall locations, the journal said.
Starboard added that Macy’s stock could trade as high as $70, nearly double its Friday closing price of $35.89, the Journal said.
Reuters could not immediately reach Macy’s Inc and Starboard Value for comment outside regular business hours.
Starboard owns a 1.04 percent stake in Macy’s, according to Thomson Reuters data.
In an email reply to the Journal, Macy’s said it is reviewing Starboard’s letter and views expressed by the investment firm are consistent with actions already underway at the company, the paper said.
How many fucking times do I have to see this movie? Shareholder value is never released…ever.
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how does Macy’s spin off their real estate? Do they actually own the mall anchors that their stores are in?