Chapman Capital Demands Sale of eSpeed (ESPD)

In a 13D filing on eSpeed, Inc. (Nasdaq: ESPD), Chapman Capital disclosed a 9.3% stake and announced its demand that eSpeed's Board of Directors maximize shareholder value via a change-of-control transaction.

Chapman said as a result of potential conflicts of interest that may exist due to cross-management roles between eSpeed, BGC Partners, L.P. and Cantor Fitzgerald, L.P., they believe that it is the fiduciary duty of eSpeed's Board of Directors to compel the conversion of all Class B common shares into Class A common stock.

Citing weak results and incongruous granting of free stock options to Howard W. Lutnick, Robert Chapman said, "the Company's ownership base has conveyed a nearly uniform desire for eSpeed's Class A shares to be maximized through a change-of-control transaction."