Elliot Management, a US-based investment company, is suggesting that Scout24, the German-based car classifieds company, to sell off their auto listings portions and increase their buyback efforts to help increase investor returns.
Elliott, opening a new front in its broader push to shake up corporate Germany, accused Scout24 Chief Executive Tobias Hartmann of showing a lack of ambition and urged his management team to take immediate remedial action.
The $34 billion fund, founded by Paul Singer, has invested in and called for restructuring at firms ranging from software house SAP to conglomerate Thyssenkrupp. It has amassed a stake of more than 7% in Scout24.
“Should you take the decisive action needed to remove the impediments holding back Scout24, we believe the share price could rise to in excess of 65 euros per share,” Elliott said in a letter published on Monday and dated July 26.
“Unfortunately, recent events have us wondering if the Scout management team shares our optimism for these high-quality businesses.”
Responding, Scout24 said it took note of Elliott’s letter and would maintain a dialogue with all shareholders. Scout24 had announced steps to strengthen its core businesses and optimize its capital structure, it added in a statement.
The company’s shares ended last week at 50.25 euros, giving it a market capitalization of 5.4 billion euros ($6 billion). They traded 0.6% firmer on Monday in a weaker overall market.
Read more here
Join us November 12-15 for the Property Portal Watch Conference Madrid 2019.