There is a nasty fight brewing among Fisher Communications investors as the company appears to be on the brink of being sold.
Officials at Fisher, which owns 20 stations along the west coast including Seattle’s KOMO, sent a letter to shareholders this week urging them to reject the advances of a key investor. According to the letter, FrontFour Capital Group, whose co-founder and portfolio manager David Lorber currently sits on the Fisher board, is attempting to elbow its way to more seats on the board so that the hedge fund can orchestrate a quick sale of the company.
Pointing out that 90% of FrontFour’s shares have been purchased since last May, Fisher officials stated that the investment group “has not been a long-term significant Fisher shareholder. Instead, it is a hedge fund that is focused on reaping a significant short-term gain.”
Lorber recently submitted a slate of four hand-picked nominees for election to Fisher’s board of directors. Company officials worry that if Lorber’s nominees are elected, FrontFour will gain a dangerous amount of sway over the future of Fisher.