| Obrem Capital Management, a New York based activist hedge fund, has
been trying to get MDS Inc. to sell or spin-off one or more business
units. After disclosing a 5.1% stake in the company this past April,
Obrem has put pressure on MDS increase shareholder value through
changing its capital structure, buying back shares, and selling off
assets. On June 26, Obrem Capital Management sent a letter suggesting
that MDS sell off its Nordion unit to raise capital for a stock buyback.
However, Scotia Capital analyst John Maletic doubts that Obrem will be
able to get changes accomplished at MDS without support from more
shareholders and management. The largest MDS shareholder is ValueAct
Capital, an activist investor with 19% stake. But with a seat on the
board already, it is uncertain whether ValueAct will be open to Obrem
Capital Management's efforts. |
