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CCA Industries Inc. Message Board

  • bubble_go_bye_bye bubble_go_bye_bye Jan 27, 2011 4:52 PM Flag

    Lion Fund director nominations

    CAW filed an 8-K today attaching a letter from the Lion Fund indicating that the Lion Fund intends to nominate two directors. This seems odd because a) voting control of CAW is held by the owners of the Class A shares and b) the latest proxy doesn't show the Lion Fund as a significant holder of the stock. I wonder what's up.

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    • I dont think he would pay a huge premium to market for CAW.

      I suspect his goal was to decrease executive pay which would increase cash flow & earnings. Plus, the lack of legal expenses going forward should bode well for EPS.

      Biglari can make money without buying it out...just like he did with Fremont & Friendlys.

      Maybe he can eventually help get CAW sold.

      I dont own any CAW but I do own a lot of BH.

      I wouldnt expect a $12 buyout within 6 months.

      But $10-12 in a few years to a strategic buyer would be reasonable. No real synergies in BH buying them other than duplicate public company costs.

    • That is interesting, the Lion fund is managed by activist investor Sardar Biglari. Sardar is already in one highly contentious takeover fight with Freemont Michigan. The ownership structure makes it hard to think that he is trying to acquire the company. The class A shareholders nominate four directors while class B only nominate three meaning A shareholders effectively control the board. According the the release they have been able to build up a stake of roughly $800K worth of stock which is under the 5% threshold where reporting is required. It seems odd to try for board seats before owning a greater than 5% stake especially when you are seeking two of the three board seats that B shareholders control.

      This really can only drive up the price of the stock though.

3.33+0.01(+0.30%)Apr 29 3:55 PMEDT