The bwin.party board is urging its shareholders to reject resolutions put forward by SpringOwl, the investment vehicle of Jason Ader.
Ader, through SpringOwl, now owns about 5 percent of the company and is seeking to appoint four new members to the company’s board.
The company has written its investors asking them to vote against the resolutions due to the lack of information it has received on the nominees proposed. The company also says the appointments are not in the best interest of the company.
“On the limited information presented to date by SpringOwl on each of the proposed director nominees, and having consulted with many of its leading shareholders and depositary interest holders, the board is recommending that shareholders and depositary interest holders vote against the SpringOwl resolutions,” the letter stated.
SpringOwl was able to nominate one board member under a “Relationship Agreement” reached after it purchased a 6.1 percent stake in bwin.party. Published reports say the company now controls a little more than 5.2 percent of the company.
SpringOwl, however, has put forth four other nominees—Michael Fertik, a U.S. technology entrepreneur; Francis Grady, founder of a law firm that specializes in U.S. banking regulation; Kalendu Patel, a venture capitalist; and Steven Rittvo, the chairman of U.S.-based gaming consultant The Innovation Group.
Company officials said SpringOwl is trying to “bypass” the routine nomination process and is “putting at risk the ability of the board to operate as a unified and effective forum in the best interests of all shareholders and depositary interest holders.”