May 02, 2022
Hello, Retail readers!
Situational awareness: The Met Gala is tonight, a massive red carpet event that brings out the biggest stars from sports, entertainment and fashion. It also brings out wads of cash from brands and designers seeking celebrity PR.
1 big thing: SpartanNash's activists push settlement
Macellum and Ancora are urging SpartanNash's board to form a special committee to explore strategic alternatives, the pair of activist investors said today.
Why it matters: The activists said they would abandon the proxy fight they have waged and agree to a settlement that includes establishing the proposed committee as well as naming a new shareholder representative.
- Asking for a settlement is a shift in Macellum and Ancora's strategy, though the statement they issued notes that their "desire to collaborate" has been rebuffed before.
Catch up fast: Macellum and Ancora filed a definitive proxy statement on April 19, which nominated three candidates to the target's board, urging shareholders to vote the "blue" proxy card.
Between the lines: Last week United Natural Foods and PE firm Oak Street Real Estate Capital were reported to be interested in either buying SpartanNash or its parts.
- It's that interest that is spurring the hedge funds to push for a settlement, they claim.
What we're watching: Is this a sign that the investors' proxy fight is failing to gain traction, or an attempt to show shareholders the extent of SpartanNash's resistance to a sale?