Gyrodyne Corporation (NDAQ:GYRO) directors may face some competition at the company's next annual meeting. Full Value Partners announced in a Schedule 13D/A filing their intention to solicit proxies in an attempt to takeover the company's board during the next annual meeting. The hedge fund said that it plans to eliminate the company's poison pill and work to unlock value in the company if successful.
Full Value Partners noted that during the last annual meeting, comments were made that the company's shares were worth upwards of $200/share; however, management has clearly done very little to close the valuation gap as shares continue to trade at just $50/share. Clearly, changes need to be made, but with a poison pill in place, it may be difficult to remove management or board members.
Many investors are hoping that the hedge fund can successfully takeover the company as it would likely mean changes to unlock value and improve cost structure. Despite the poison pill, the hedge fund controls over 17% of the company, which makes it a viable contender during any elections. If elected, we could see a change of control transaction or recapitalization in order to unlock value much more quickly. This makes GYRO a stock worth watching !
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$52.0 (08/26/07)
