[Randomguy34]

Bally's shareholder blasts chairman's 'woeful' takeover bid

In a sharply worded letter slamming "moon shot bets" and accusing Chairman Soo Kim of trying to take over the company "at a fraction of its fair value," two investors are calling on Bally's board to reject Kim's "woefully undervalued" bid and reboot its overall strategy — including rethinking its Chicago plans.
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Fetters and King recommend that committee "reject Standard General's self-serving and undervalued acquisition proposal. It is counter to the best interests of all stakeholders, offering a fraction of the value otherwise attainable," the investors write. "Furthermore, it is reprehensible to use the already overstretched balance sheet of the company as a source of funds: This jeopardizes the completion of the Chicago project, putting at further risk gainful employment and tax generation in Illinois; impairs existing bondholders to the company; and diminishes the company’s capacity to invest across its casino portfolio."

The duo also say they believe the casino operator's Chicago project will yield a return on investment well below Bally's cost of capital and recommend that Bally's seek partners with a better casino operating track record.

https://www.chicagobusiness.com/poli...l-takeover-bid