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Komfie Manalo, Opalesque Asia: Activist hedge fund Elliott Management has asked the board members of CDK Global to immediately act on its proposed "Value-Maximizing Plan" (VMP) without delay aimed at improving CDK’s business operations and capital return program.
In a letter addressed to CDK chairman Leslie Brun and CEO Brian MacDonald, Elliott senior portfolio manager Jesse Cohn said that the majority of the company’s shareholders agree with the proposed VMP and are awaiting clarity from the board on its willingness to act swiftly on the opportunities presented by the plan.
Cohn said in his letter, "First, we would like to thank Les, Brian and Al for the ongoing positive dialogue and for taking time to discuss the VMP we laid out in our letter of May 4th. We also appreciate the constructive discussion we have had with your advisors. We look forward to continuing our discussions about how best to maximize shareholder value at CDK."
He said the Elliott, which owns 8.6% of CDK, has been discussing the plan with shareholders and most have agreed that not only would the plan create sustained improvements in shareholder value, but it would also create a better company for employees and customers.
Cohn added, "Over the last month, we have exchanged views on CDK with many in the investment community, including a majority of CDK shareholders. While we had already spoken to many CDK shareholders s...................... To view our full article Click here
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