Centaurus Capital and Ares Capital face-off over Allied Capital Corp

March 9th, 2010
| More
Contributed by: Hedge Fund Solutions LLC
On February 8th, Centaurus Capital sent a letter to Allied Capital Corp (NYSE: ALD) claiming that Ares Capital Corporation’s (NASDAQ: ARCC) recent offer to purchase Allied in a $648 million all-stock deal undervalued the business. According to Hedge Fund Solutions’ Catalyst Research Reports, Centaurus Capital advised Allied to further consider Prospect Capital Corporation’s (NASDAQ: PSEC) offer for an all-stock purchase which was previously rejected by the board as the “less superior” offer but is implicitly valued 25% higher than Ares’.

On March 3rd, Allied Capital announced that a special cash dividend of $0.20 per share will be declared if shareholders owning a total of 2/3 of shares outstanding approve of the merger with Ares Capital at the meeting scheduled for March 26th. This will be difficult since about 70% of Allied shareholders are retail holders who do not vote as frequently as institutional holders. Prospect terminated its offer after this announcement but will discuss a potential deal if this merger falters.

Centaurus Capital currently holds 9,510,887 shares of Allied or 5.3% of shares outstanding. Centaurus Capital is a deep value hedge fund manager that specializes in event-driven European strategies. The firm was founded in 2000 by Chairman Bernard Oppetit and Chief Investment Officer Randel Howard Freeman.
For Detailed Investor Profiles on these Investors, click below:
Centaurus Capital
Related People: Bernard Oppetit; Cecilia McAnulty; Paul Leary; Randel Howard Freeman
Related Entities: Centaurus Alpha Fund
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles; Hedge Fund Resources and Featured Partner News


More Recent Headlines

CRD Analytics and Trucost Expand Partnership

Shareholder Activist Update: Centaurus Capital and Allied Capital Corp

Will Zales take the glow off Richard Breeden’s trading career?

Middle East Investors to Increase or Maintain Hedge Fund Allocations

Nevsky Capital to wind-down flagship Emerging Markets hedge fund

Winslow Management Company closes Green Solutions Fund; To focus efforts on flagship Winslow Green Growth Fund

New Fund from Former D.E. Shaw and Satellite Pair

Pirate Capital founder Tom Hudson launches Doubloon Capital LLC

The Next Step for ESG Investing: Moving from What and Why to How

Los Angeles Bus Drivers Targeted in Ponzi Scheme