1. How Wall Street Enabled A Controversial Power Grab At A Wannabe Berkshire Hathaway

    How Wall Street Enabled A Controversial Power Grab At A Wannabe Berkshire Hathaway

    When Sardar Biglari, CEO of Biglari Holdings, won a hotly contested shareholder proxy in April, investors feared his next move would be to cement control over the company. They were right, and a review of Biglari’s actions in recent months shows he did so with the help of leading Wall Street investment banks...

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    1. Based upon the potential for a conflict of interest resulting from the Company's ownership of limited partnership interests in the Purchaser, the Independent Directors unanimously voted to recommend that the Board express no opinion and remain neutral with respect to the Offer.
    2. The tender offer is an aggressive entrenchment move aimed at enabling the CEO to use the shareholders' money to gain control over the company.
    3. Given that the CEO's management and performance has been controversial, it is especially important for this company's shareholders to retain the power to vote for a change of control. Unfortunately, if the tender offer is successful, the CEO would become fully entrenched.
    4. Although shareholders are seemingly free to decide whether to tender their shares, shareholders may be forced into tendering by the fear of remaining with low-value minority shares with little say in the event they do not accept the offer.
    5. There are individuals that run companies that are going to be subject to microscopic scrutiny on how they expense items and a host of other things.
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