- "It seems clear to us that you are bound and determined to defend your pending transaction with PennantPark Floating Rate Capital (NYSE:PFLT) at all costs, even if it means depriving your stockholders of an economically superior transaction," writes HC2 (HCHC) CEO Phil Falcone to the MCG Capital (MCGC) board.
- He states as untrue, MCG's contention that HC2's proposal requires SEC approval, and offers to pay the $7M breakup fee due to PFLT.
- As further protection for MCG shareholders, HC2 also offers to expand the customary bilateral collar from 15% to 20%, and allow MCG to terminate a merger agreement between the two companies should HC2 stock decline by 30% or more.
- Noting MCG's criticism of the "volatility" of HC2 stock, Falcone wryly notes the total return since he took over is 267.9%, and the annualized return 154%.
- MCGC closed lower by 0.4% at $4.62. The PFLT offer is for $4.75 in cash and stock and HC2's is $5.25, also in cash and stock.
- Source: Press Release
- Previously: Fight between Phil Falcone and MCG Capital gets dirty (June 2)