Proxy advisor Glass, Lewis backs Blucora's directors in fight with Ancora

Avantax

09/04/2021 14:15

By Svea Herbst-Bayliss
    BOSTON, April 9 (Reuters) - Proxy advisor Glass, Lewis and
Co. on Friday said Blucora, Inc  BCOR.O  shareholders should
vote for the company's directors and reject an activist
investor's push to seat four dissident directors and explore
strategic alternatives for the tax services business.
    Glass, Lewis analysts said dissident investor Ancora
Holdings Inc's platform "is significantly weighed down by a
hit-or-miss strategic plan and a slate of candidates who, for a
variety of reasons, do not clearly offer what we consider to be
a superior alternative to the status quo."
    Cleveland-based Ancora, which owns a 3% stake in Irving,
Texas-based Blucora, in February nominated directors and urged
the company to consider alternatives for its tax services
business, including a sale.
    Blucora's directors responded to the suggestions by noting
they had 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.
    "There are a number of issues which ultimately limit our
willingness to suggest investors should support the Dissident
platform at this time," the Glass, Lewis report said.
    Investors often rely on voting recommendations from Glass,
Lewis and its bigger rival, Institutional Shareholder Services
(ISS), to make decisions on critical votes for directors or
mergers.
    ISS has not yet announced its recommendation.
    Blucora, which is valued around $817 million, has seen its
stock price climb 32% in the last year and 6.5% since January,
performing better than sector rivals. It closed at $16.94 on
Thursday.

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