Mercury Real Estate Advisors LLC Voices 'Outrage' Over Sizeler Property Investors (SIZ) Sale to Revenue Properties
In an amended 13D filing on Sizeler Property Investors Inc. (NYSE: SIZ), Mercury Real Estate Advisors LLC disclosed an 8.9% stake (1.9 million shares). The firm sent a letter to the company voicing its "outrage" over the news the company would sell to Revenue Properties for $15.10 per share.
The firm said, "the buyer is a close affiliate of Mark Tanz, the Chairman of the Board of Directors of Sizeler. Mr. Tanz is the former controlling shareholder of Revenue Properties, a current shareholder of Revenue Properties, and was until very recently a member of the Board of Directors of Revenue Properties."
They also said, "most egregious is the fact that the Company is clearly worth significantly more than $15.10 per share and to sell the Company for this price to an affiliate of Mr. Tanz raises serious concerns with respect to the fiduciary duties owed to the shareholders of Sizeler."
The firm demands the company terminate all current discussions and agreements with Revenue Properties immediately.
A Copy of the Letter:
Sizeler Property Investors, Inc.
Attn: The Board of Directors
2542 Williams Boulevard
Kenner, Louisiana 70062
Gentlemen:
As one of the largest shareholders of Sizeler Properties Investors, Inc. (“Sizeler” or the “Company”), we are outraged by the announcement on Tuesday that the Board of Directors had entered into a letter of intent to sell the Company to Revenue Properties Co. (“Revenue Properties”) for a mere $15.10 per share. First of all, the buyer is a close affiliate of Mark Tanz, the Chairman of the Board of Directors of Sizeler. Mr. Tanz is the former controlling shareholder of Revenue Properties, a current shareholder of Revenue Properties, and was until very recently a member of the Board of Directors of Revenue Properties. Most egregious is the fact that the Company is clearly worth significantly more than $15.10 per share and to sell the Company for this price to an affiliate of Mr. Tanz raises serious concerns with respect to the fiduciary duties owed to the shareholders of Sizeler.
We demand that the Board of Directors terminate all current discussions and agreements, including the exclusivity agreement, with Revenue Properties immediately. It appears to us that Revenue Properties, an affiliate of the Mr. Tanz, is trying to purchase the Company at a less than arms-length price. Furthermore, we are concerned that at least one potential buyer has not been provided the necessary information to allow a competitive bid process to occur. We find it incomprehensible that Wachovia Securities, in its role as a financial adviser to the Company, would instruct the Board of Directors that a sale of the Company at this price would be in accordance with their fiduciary duty to shareholders. Overall, it is our opinion that Wachovia Securities has done an abysmal job in managing what should have been a very straightforward process.
Sizeler is a company that has been mired in over 15 years of questionable insider dealings. We had hoped that the termination of Mr. Lassen and the appointment of Mr. Tanz as the replacement Chairman had ushered in a new era of shareholder friendly and transparent corporate governance. Unfortunately this does not appear to be the case.
Please be advised that we are considering all options with respect to this odiferous transaction and will not accept an acquisition on these unfair terms to be consummated.
Very truly yours,
MERCURY REAL ESTATE ADVISORS LLC
The firm said, "the buyer is a close affiliate of Mark Tanz, the Chairman of the Board of Directors of Sizeler. Mr. Tanz is the former controlling shareholder of Revenue Properties, a current shareholder of Revenue Properties, and was until very recently a member of the Board of Directors of Revenue Properties."
They also said, "most egregious is the fact that the Company is clearly worth significantly more than $15.10 per share and to sell the Company for this price to an affiliate of Mr. Tanz raises serious concerns with respect to the fiduciary duties owed to the shareholders of Sizeler."
The firm demands the company terminate all current discussions and agreements with Revenue Properties immediately.
A Copy of the Letter:
Sizeler Property Investors, Inc.
Attn: The Board of Directors
2542 Williams Boulevard
Kenner, Louisiana 70062
Gentlemen:
As one of the largest shareholders of Sizeler Properties Investors, Inc. (“Sizeler” or the “Company”), we are outraged by the announcement on Tuesday that the Board of Directors had entered into a letter of intent to sell the Company to Revenue Properties Co. (“Revenue Properties”) for a mere $15.10 per share. First of all, the buyer is a close affiliate of Mark Tanz, the Chairman of the Board of Directors of Sizeler. Mr. Tanz is the former controlling shareholder of Revenue Properties, a current shareholder of Revenue Properties, and was until very recently a member of the Board of Directors of Revenue Properties. Most egregious is the fact that the Company is clearly worth significantly more than $15.10 per share and to sell the Company for this price to an affiliate of Mr. Tanz raises serious concerns with respect to the fiduciary duties owed to the shareholders of Sizeler.
We demand that the Board of Directors terminate all current discussions and agreements, including the exclusivity agreement, with Revenue Properties immediately. It appears to us that Revenue Properties, an affiliate of the Mr. Tanz, is trying to purchase the Company at a less than arms-length price. Furthermore, we are concerned that at least one potential buyer has not been provided the necessary information to allow a competitive bid process to occur. We find it incomprehensible that Wachovia Securities, in its role as a financial adviser to the Company, would instruct the Board of Directors that a sale of the Company at this price would be in accordance with their fiduciary duty to shareholders. Overall, it is our opinion that Wachovia Securities has done an abysmal job in managing what should have been a very straightforward process.
Sizeler is a company that has been mired in over 15 years of questionable insider dealings. We had hoped that the termination of Mr. Lassen and the appointment of Mr. Tanz as the replacement Chairman had ushered in a new era of shareholder friendly and transparent corporate governance. Unfortunately this does not appear to be the case.
Please be advised that we are considering all options with respect to this odiferous transaction and will not accept an acquisition on these unfair terms to be consummated.
Very truly yours,
MERCURY REAL ESTATE ADVISORS LLC
posted by Lon at 8:51 AM
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