A Detour On the Way to a Proxy Fight

Summary


RICHMOND, Va. (HedgeWorld.com) - The annual shareholders meeting of Massey Energy Corp. featured a question-and-answer session that demonstrated many of the shareholders have concerns far from those at the center of the proxy fight between Massey's management and Third Point LLC, the corporate-activist hedge fund.

The proxy fight came about because Third Point and its ally, hedge fund Jana Partners LLC, have contended for months that Massey should take on more debt in order to finance a stock repurchase plan. Massey does have a stock purchase plan, and on May 11 it announced the initiation of those repurchases.

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A Detour On the Way to a Proxy Fight

But the hedge funds argued that the $50 million set aside for this plan is too little. In a "Dear Fellow Stockholder" letter dated May 10, Third Point's two nominees to Massey's board, Daniel S. Loeb and Todd Q...

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