Wednesday, March 14, 2007

Sandell Asset Management Backs Icahn on WCI

In a 13D filing on WCI Communities Inc. (NYSE: WCI), 9.8% holder Sandell Asset Management disclosed a letter to the company supporting Carl Icahn. The firm belives that a sale of the WCI is the best and possibly only route to value creation for shareholders.

In the letter, Sandell said, "We support Carl Icahn's efforts to create change at WCI by nominating and electing an alternative slate of directors at the WCI annual meeting, and see his recent tender offer as a positive step in value maximization at WCI. The onus is clearly on WCI's management, board of directors and financial advisors at this point to step up their efforts to achieve the best possible result of the strategic review process. If that process does not yield a higher value, we encourage the board to work with Mr. Icahn toward a negotiated deal rather than attempt to hide behind the recently adopted poison pill. In the absence of a higher bid, the shareholders may have little choice in the decision of selling to Mr. Icahn or leaving the company in current management's hands and risking further value destruction."
Yesterday, Icahn announced plans to initiate a $22 per share "any and all" tender offer for WCI shares.

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