Shareholder Activist Update: Mario Cibelli’s Marathon Partners vs. Dover

December 2nd, 2009
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Contributed by: Hedge Fund Solutions LLC
The Trustee for the RMT Trust, an entity which controls Dover Motorsports (NYSE: DVD) through ownership of supermajority voting class A shares, told Mario Cibelli’s Marathon Partners LP hedge fund that it has no interest in pursuing the fund’s $2.35 per share purchase offer. Marathon Partners LP, which is managed by Cibelli Capital Management, holds a 16.2% stake in Dover and has been engaged in an activist battle with the company’s management since early 2007.

Hedge Fund Solutions Catalyst Equity Research Report covered the deal in early November when Marathon sent its letter to the Trustees of RMT Trust offering to acquire its ownership stake in DVD. Previously, Marathon demanded DVD sell their racetrack assets in the Midwest United States. On March 2 2009 GAMCO Investors (7.7% shareholder) sent a letter to DVD announcing their intention to vote their shares in favor of a proposal submitted by Marathon to eliminate the poison pill. Marathon claims that over 90% of non-insiders voted to remove the company’s poison pill.

Hedge Fund Solutions (HFS) is a Philadelphia-based investment research and strategy consulting firm focused on providing substantive solutions on issues relating to shareholder activism. The Firm has an unparalleled depth of knowledge on activist investing and has become the trusted advisers to numerous institutional investors, CEOs and board members worldwide. For more information on Hedge Fund Solutions or to sign-up for their Catalyst Equity Research Reports, please click here.
For Detailed Investor Profiles on these Investors, click below:
Cibelli Capital Management
Related People: Mario D. Cibelli
Related Entities: Cibelli Capital; Marathon Partners LP
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles; Hedge Fund Resources and Featured Partner News

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