- Colony Capital (NYSE:CLNY) shareholder Blackwells Capital says it will nominate five candidates, including a replacement for CEO Tom Barrack, for election to Colony's board at the upcoming 2020 annual shareholders meeting.
- Blackwells, which owns a 1.85% stake in CLNY, says Barrack's ties to Pres. Trump represent "significant personal distractions that are a blemish on the reputation of the company."
- Barrack already agreed to hand over the role to a successor, Marc Ganzi, in 2021, but that's not enough for Blackwell, noting that Ganzi is Barrack's friend.
- Barrack helped chair Trump's Presidential Inaugural Committee, which has been investigated by federal authorities.
- "It appears Mr. Barrack has used friendship and politics as criteria for business deals and for allocating shareholder capital," Blackwells says, citing Barrack's ties to Rick Gates, who has pleaded guilty to federal charges stemming from special counsel Robert Mueller's investigation.
- CLNY +2.2% pre-market.
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