Arnhold & S. Bleichroeder Moves to Block Thoma Bravos’s Entrust Purchase
|July 2nd, 2009||
|Arnhold & S. Bleichroeder Advisers LLC submitted a filing with the SEC on June 18th, effectively disclosing its 5.2% stake in digital securities firm Entrust (NASDAQ:ENTU). The firm has said it will use “all of [its] eligible shares” in voting to block a merger between Entrust and private equity firm Thoma Bravo. |
Highlighting valuation, strategic, and governance concerns, Arnhold & S. Bleichroeder believes the merger to be ineffectual at the present time. It believes the board’s concern over April stock price to be unwarranted given the current economic environment. It also stated that Entrust’s recent share performance is a misleading representation of the company’s valuation. Robust growth in its several product lines has reinforced Arnhold & S. Bleichroeder’s case for Entrust to remain an independent entity.
As a direct result of this misunderstanding, Arnhold & S. Bleichroeder does not believe that the board’s decision is truly unanimous. It believes that the board of Entrust has been misguided in its actions leading up to the proxy contest, and believes much of the board’s efforts to stall the vote for a merger is “at great cost to Entrust in terms of management focus and actual expense.” In a particularly biting closing statement, Arnhold & S. Bleichroeder stated, “we would be pleased to see the present board resign if the TB transaction fails to obtain shareholder approval.”
The merger vote is scheduled to take place July 10, 2009.
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