SoHo House jumps after Third Point's Loeb unveils big stake, blasts buyout deal
29/01/2025 21:09
(Updates to market close)
** Shares of SoHo House SHCO.N finish up 12.5% at $8.29 on
Weds after Third Point's Daniel Loeb revealed large stake and
criticized buyout deal
** SHCO shares register highest close since Jun 9, 2022.
Trading volume of ~3.7 mln shares is about 5x the 10-DMA, per
LSEG
** Loeb and his activist hedge fund Third Point disclosed nearly
10% stake in the operator of exclusive private clubs, per a
regulatory filing on Weds
** In a letter letter to its board, the billionaire investor
called last month's take-private offer a "sweetheart" deal with
its chairman, Ron Burkle, who runs investment firm Yucaipa
** "Burkle’s obvious conflicts of interest and undue
influence on the board via his super-voting share class make it
imperative that the Board open the sale process to outside
bidders," the letter said
** SHCO shares closed at $4.91 on Dec 18, the day before the
co's board announced the $9/sh bid
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))