“We do not agree. We believe that the facts clearly indicate that the company’s transformation attempts have failed. Argo may reasonably mark the beginning of the expected transformation 2020. From all points in the beginning of the year, it remains below the indicators associated with other companies in the same industry. “
The fund, which urged the Argos Board of Directors to consider prospects for the sale of its business in 2021, has a strong view that the underwriters’ list of directors must be immediately strengthened and restructured. Capital Returns proposed two candidates for board, whose nomination prompted the aforementioned Argo release.
“It’s worth noting that the company has never used the term’strategic relocation’in public communications during 2020,” continued Capital Returns. In our view, Argo is trying to create an appearance of progress and strategic change to convince shareholders that no further renewal of the board is necessary, albeit late.
“We are not fooled by Argo’s attempt to rewrite the past. The current board of directors is given ample opportunity to create value in Argo, and the” strategy “argued in 2020. “Relocation” has brought about further destruction of shareholder value. We believe that the board of directors needs to be urgently strengthened in order for Argo to reach that potential. “
In addition, “We are calling for the annual general meeting of shareholders to be held in early May in accordance with historical practice so that shareholders can appoint new directors without delay. We warn the company against such tactical tactics confirming our view that this board of directors, which is currently composed, is more interested in self-preservation than in rebuilding trust with shareholders. It just helps to do. “
At the time of this writing, Argo has not given a public response to the activist shareholder claims. The insurance company’s annual shareholders meeting has not yet been announced.
Activist shareholders do not hesitate to “try to rewrite Argo’s past”
Source link Activist shareholders do not hesitate to “try to rewrite Argo’s past”