InfoGroup’s 3rd-largest shareholder says proposed sale price for database provider is too low
By Josh Funk, APTuesday, April 6, 2010
InfoGroup investor blasts proposed sale price
OMAHA, Neb. — An investment firm that holds nearly 6 percent of InfoGroup’s stock says the company’s proposed sale to private equity firm CCMP Capital Advisors is priced too low.
Hotchkis and Wiley Capital Management sent a letter to InfoGroup’s board on Monday complaining that CCMP’s roughly $460 million offer significantly undervalues InfoGroup.
Portfolio manager Noah Mayer says in the letter he’s confident Infogroup is worth more than $12 per share under current management. Mayer says the $8 per share that CCMP is offering suggests the sale process has been mismanaged.
Los Angeles-based Hotchkis and Wiley is InfoGroup’s third-largest shareholder. The Omaha-based firm’s two biggest investors control 36 percent of the stock and both support the deal.
On the Net:
InfoGroup Inc.: www.infogroup.com
CCMP Capital Advisors LLC: www.ccmpcapital.com
Hotchkis and Wiley Capital Management: www.hwcm.com
