Wednesday, June 1, 2016

Grain Logistics/Ethanol Producer Attacks Phil Falcone: A "history of misconduct".(ANDE)

From Agrimoney:

Andersons attacks Falcone, in defence against $1.4bn bid
Grain-to-rail group The Andersons got personal in its defence against a $1.4bn takeover bid from HC2, accusing Philip Falcone, the chief executive of the investment group, if a "history of misconduct".
Andersons - terming HC2 the "wrong buyer" , offering the "wrong price" and striking at the "wrong time" – flagged a $11.5m fine that Mr Falcone agreed in 2013 to pay after admitting , with his hedge fund Harbinger Capital Partners, wrongdoing in a settlement with the US Securities and Exchange Commission.
"Falcone admitted to facts alleged by SEC in a consent order," Andersons said in a presentation to investors, noting that he, and Harbinger, had admitted borrowing more than $100m in customer funds to pay personal taxes.
The presentation also repeated a comment from Andrew Ceresney, co-director of the SEC's enforcement division, that "Falcone and Harbinger engaged in serious misconduct that harmed investors, and their admissions leave no doubt that they violated the federal securities laws".
Andersons, restating its dismissal of HC2's offer as "opportunistic" and "substantially" too low, also termed "highly questionable" the investment group's ability to finance and execute such as large acquisition.
"HC2's market cap is less than one-sixth of The Andersons," the presentation said, claiming that HC2 had a "mere" $138m in cash in hand, and a "thin" claim to have secured financing....MORE