Blucora urges investors to reject Ancora's directors, plans

Avantax

15/03/2021 11:00

By Svea Herbst-Bayliss
    BOSTON, March 15 (Reuters) - Financial services firm Blucora
Inc  BCOR.O  is urging shareholders to back its board and block
a dissident investor's effort to seat four directors, arguing it
has already made key changes that are bearing fruit and that the
outsider's plans are "deeply flawed."
    "Blucora is on the right path to creating long-term value
for all stockholders," the Dallas-based company's board wrote to
shareholders asking them to vote for all of its director
candidates instead of the four that activist investor Ancora
Holdings Inc proposed. Reuters saw a copy of the letter.
    Blucora's directors wrote that they replaced the chief
executive and chief financial officers early last year amid
concerns about performance, positioned the company's two
tax-focused businesses for long-term growth, added four new
independent directors in 2020 and 2021, and continued to review
alternatives to how the business is currently set up.
    In the six months to March 12, Blucora's stock price climbed
73%. Over the past 12 months, the stock price, which gained 52%,
bested the index and sector rivals.
    "We believe Ancora's proposed path is deeply flawed and
would destroy shareholder value," the letter said.
    A representative for Ancora, which invests $8 billion, was
not immediately available for comment.
    Two weeks ago, Ancora, which owns a 3% stake in Blucora, a
company valued at $837 million, nominated four directors to the
board and called on it to consider selling its tax services
business. Ancora argued there were few synergies between
Blucora's wealth management and registered advisory business,
Avantax, and its TaxAct unit.
    Blucora said that now was not the right time to sell TaxAct
after the pandemic affected last year's tax season and may have
an impact on this year's as well.
    The company added its board candidates were more experienced
than Ancora's nominees, where only the firm's chief executive
officer, Frederick DiSanto, has public company experience.

 (Reporting by Svea Herbst-Bayliss; Editing by Peter Cooney)
 ((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))