Just weeks after its largest institutional holder demanded its financial
records, Farmer Bros. Co. has agreed to open the company books.
The publicity shy coffee distributor made the concession in a letter to
Franklin Mutual Advisers LLC, which owns 9.6 percent of Farmer Bros.’
outstanding shares.
Farmer Bros. said it wants to wait until after it files its audited annual
report for the year ended June 30, according to officials at Franklin. The
annual report is due at the end of September.
Franklin has battled with Farmer Bros. over a host of governance issues for
years. Franklin and other shareholders have accused Farmer Bros.’ management
of intentionally keeping the stock price down for the estate-planning
purposes of its chief executive, Roy F. Farmer.
Recently, Franklin suggested that Farmer Bros. split up its coffee
operations from a pool of investment funds that held $226.8 million, or 56
percent of corporate assets, at March 31. Franklin wanted to see Farmer
Bros.’ books to find out whether it should be registered as an investment
company.
“We’ll see what happens from here,” said David Winters, chief executive of
Franklin Mutual, a unit of San Mateo-based Franklin Templeton Investments.
Winters said he did not know when or where the inspection would take place.
He could not make the letter available, he said.
John Simmons, Farmer Bros.’ treasurer, declined comment. Asked if he could
disclose the contents of the letter to Franklin, Simmons replied, “I choose
not to.”
The
Forum is open to all Farmer Bros. shareholders, whether institutional or
individual, and to professionals concerned with their investment decisions.
Its purpose is to provide shareholders with access to information and a free
exchange of views on issues relating to their evaluations of alternatives.
As stated in the Forum's
Conditions of Participation, participants are expected to make independent use
of information obtained through the Forum, subject to the privacy rights of
other participants. It is a Forum rule that participants will not be
identified or quoted without their explicit permission.
There is no charge for
participation. Franklin Mutual Advisers, LLC, the manager of funds
owning approximately 12.6% of Farmer Bros. shares, provided initial
sponsorship for the Forum and arranged for it to be chaired by
Gary
Lutin. Continuing support and guidance of the Forum is provided by an
Advisory Panel of actively interested shareholders.
For additional information or to be included in an email
distribution list, send an inquiry to
farm@shareholderforum.com.
