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http://www.aircargoworld.com/break_news/12052006f.htm
[FONT=Arial, Helvetica, sans-serif]Shareholder Demands World Air Sale[/FONT]
A major shareholder of World Air Holdings formally called on World's board to launch a sale of the company. World Air Holdings is the parent of passenger carrier North American Airlines and of World Airways, which operates both passenger and freighter aircraft and wet leases widebody freighters to other carriers.
Clinton Group, a private investment group, told the Securities and Exchange Commission in a Dec. 4 filing it holds 1.12 million shares or 5.1 percent of World, and has been disappointed at World's performance and "frustrated" with its management.
CGI also attached a letter sent by CGI Managing Director Conrad Bringsjord to Ronald Fogleman, chairman of World's board. CGI urged the board to "maximize shareholder value by immediately embarking on a sale of the company to a strategic or financial buyer."
Recently, under shareholder pressure World Air bought up some publicly held stock to try to boost the price, and formed a special board committee and retained investment banker Legacy Partners to begin a strategic review of all options to boost value.
But since those moves in September, CGI said, "there has been limited communication to shareholders regarding the scope and progress of this undertaking."
CGI said that if World does not opt to begin a sale process, and so direct its advisers, CGI would consider trying at the next annual meeting to install directors who would pursue a sale. A World spokesman said the annual meetings are normally held in May, although the 2007 meeting has not yet been scheduled.
The investor group did, though, assert "our belief in the long-term prospects of the company," and said it would consider taking "a co-investment role as an equity investor" in an ownership restructuring.
Bringsjord charged that World's "management has displayed an inability to secure investor credibility" amid high expenses and delays in reporting financial results. "As a result," he added, "the current stock price fails to reflect a business with over $840 million in annual revenues and operating margin potential of 5 to 10" percent.
The company has about 22 million shares outstanding that at midday Dec. 4 were valued at $8.65, for a total market capitalization of $190 million.
[FONT=Arial, Helvetica, sans-serif]Shareholder Demands World Air Sale[/FONT]
A major shareholder of World Air Holdings formally called on World's board to launch a sale of the company. World Air Holdings is the parent of passenger carrier North American Airlines and of World Airways, which operates both passenger and freighter aircraft and wet leases widebody freighters to other carriers.
Clinton Group, a private investment group, told the Securities and Exchange Commission in a Dec. 4 filing it holds 1.12 million shares or 5.1 percent of World, and has been disappointed at World's performance and "frustrated" with its management.
CGI also attached a letter sent by CGI Managing Director Conrad Bringsjord to Ronald Fogleman, chairman of World's board. CGI urged the board to "maximize shareholder value by immediately embarking on a sale of the company to a strategic or financial buyer."
Recently, under shareholder pressure World Air bought up some publicly held stock to try to boost the price, and formed a special board committee and retained investment banker Legacy Partners to begin a strategic review of all options to boost value.
But since those moves in September, CGI said, "there has been limited communication to shareholders regarding the scope and progress of this undertaking."
CGI said that if World does not opt to begin a sale process, and so direct its advisers, CGI would consider trying at the next annual meeting to install directors who would pursue a sale. A World spokesman said the annual meetings are normally held in May, although the 2007 meeting has not yet been scheduled.
The investor group did, though, assert "our belief in the long-term prospects of the company," and said it would consider taking "a co-investment role as an equity investor" in an ownership restructuring.
Bringsjord charged that World's "management has displayed an inability to secure investor credibility" amid high expenses and delays in reporting financial results. "As a result," he added, "the current stock price fails to reflect a business with over $840 million in annual revenues and operating margin potential of 5 to 10" percent.
The company has about 22 million shares outstanding that at midday Dec. 4 were valued at $8.65, for a total market capitalization of $190 million.
