McGuire is laying out an ultimatum for Deckers, saying that if the company’s strategic review process doesn’t lead to a sale, he’ll seek to replace the entire board.
“Should Deckers’ strategic review process not culminate in a sale of the company at an attractive value to all stockholders, we will be prepared to seek significant board change at the company’s next annual meeting by nominating a slate of director candidates to replace the entire board,” McGuire, the managing partner of Marcato Capital Management, wrote in a letter, obtained exclusively by CNBC, to the board.
McGuire is turning up the heat after running a proxy contest at Buffalo Wild Wings – obtaining three of the four director spots he was seeking and the retirement of CEO Sally Smith.
Marcato’s fund is up 8 percent year today, a person familiar with the returns told CNBC.
Several months after McGuire disclosed a 6 percent stake in Deckers, the company said it had hired Moelis to initiate a review of strategic alternatives, which often means a sale.
But in the letter reviewed today, McGuire says that process has lacked transparency. He adds that the current board and management team has a history of quote “missteps” that cause him to be concerned whether a sale will result in the maximum value for shareholders.
He points out that the Chairman Angel Martinez recently started a campaign to become the mayor of Santa Barbara, which may distract him from the strategic review process.
Source: Investment Cnbc
Activist investor tells Ugg maker Deckers: Sell yourself or I'll replace the board