Sculptor Capital jumps 14% after Dan Och says company has M&A interest

Oct. 04, 2022 8:00 AM ETSculptor Capital Management, Inc. (SCU)By: Joshua Fineman, SA News Editor6 Comments

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Sculptor Capital Management (NYSE:SCU) soared 14% after co-founder and hedge fund giant Dan Och said that the company has received M&A interest.

Och said that he and other founding partners have been contacted by several third parties who have asked if the company may be open to a strategic transaction, according to a Tuesday letter Och sent to Sculptor's board. Sculptor (SCU) has a market cap of about $515 million and the shares have dropped 56% year-to-date through Monday.

Och, who was CEO of Sculptor (SCU) before stepping aside in 2018, also wrote in the letter that he believes one or more representatives of senior management has reached out to one or more third parties about a potential transaction.

"Based on prior experience, I fear that the Board may not be aware of this outreach, and I strongly suggest that the Board take complete control of this process," Och wrote. "During the process, I expect you to give any inquiries or proposals careful consideration, and to discharge your fiduciary duties under Delaware law on behalf of all stockholders of the Company. I urge the Board to act on any inquiries or proposals in a timely manner."

The M&A interest comes as Sculptor, which was originally formed as Och-Ziff, has been tussling with hedge fund pioneer Och. Last month Och said that he and several founding partner filed a lawsuit seeking increased transparency about the recent activities of SCU. In February a Sculptor (SCU) board member quit in a disagreement over the CEO's pay.

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