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The Shareholder Forumtm

support for fair value realization

of stock investments in

DBM Global Incorporated

(f/k/a Schuff International Inc.)

 
 

Support of Minority Shareholder Interests

The Shareholder Forum had offered to support Appraised Value Rights ("AVR") of DBM (f/k/a Schuff International) minority shareholders in 2014 following a $31.50 per share tender offer by the company's controlling shareholder, HC2 Holdings, Inc., with the stated intent to proceed with a short-form merger "as soon as practicable.”

HC2 acquired DBM shares in the 2014 tender offer and other purchases bringing its total holdings to 92% of outstanding DBM shares, but has not proceeded with a merger. The Forum has continued to support the minority shareholder interests of its AVR participants in this context.

 
     

Forum distribution:

Investment professionals' observations of HC2 management

 

For the article referenced below in that publication's most recent commentary on the management of HC2, see

 

Source: March 2, 2021 DealBreaker commentary

Phil Falcone’s Plan To Revolutionize Long-Term Care Insurance Went About As Well As His Plan To Revolutionize The Wireless Industry

Which is to say, it has ended in litigation and a fire sale.

JON SHAZAR  •  MAR 2, 2021

In his day, Phil Falcone was a pretty good hedge fund manager. But he’s not so good at paying taxes, so he had to stop doing that, and unfortunately, just about everything he’s tried since has fallen squarely on the “paying taxes” side of his competency: building the wireless network of the future, making women’s undergarments, (allegedly) meeting loan obligations, (allegedly) paying lawyers and, of course, paying taxes. To this list, one can now add figuring out the long-term insurance care industry, although this is very much someone else’s problem now.

Over time, Mr. Corcoran became concerned by what he described in a 2019 memo to the insurer’s independent board members as Mr. Falcone’s “continuing interjections into [Continental’s] day-to-day transactions, affairs and operations that include what look like threats and intimidation” in regards to investments. He wrote that those actions possibly violated the conditions put on Mr. Falcone in the insurance-department deal approvals.

You know, the ones he had to accept on account of the whole being banned from the securities industry thing.

Additional detail is contained in a lawsuit filed in a Texas state court last May by Continental against Mr. Corcoran accusing him of breach of contract and other employment-related wrongdoing.

You know, just before he departed his second post-hedge fund comeback conglomerate to engage in unspecified “future endeavors.”

Mr. Corcoran said Mr. Falcone pushed Continental to invest in HC2 affiliates as well as make at least two other specific investments. One of those took the form of more than $10 million in loans to an upstart gem and jewelry business named Arcot Finance LLC. Continental’s regulatory filings for 2019 indicated the investment had lost money…. Mr. Corcoran, along with an independent Continental director, raised concerns about Mr. Falcone to the Texas Department of Insurance in 2019. In early 2020, the department was examining the insurer’s related-party activities, affiliated agreements, investments and corporate governance, according to Continental’s regulatory filings.

Philip Falcone’s Second Act in Long-Term-Care Insurance Turns Ugly [WSJ]

BY JON SHAZAR

 

© 2021 Breaking Media Inc.

 

 

 

The project supporting investor interests in DBM Global Incorporated (f/k/a Schuff International, Inc.) is being conducted by the Shareholder Forum for the benefit of Participants that have reserved Appraised Value Rights ("AVR") Management, subject to conditions including standard Forum policies that each Participant is expected to make independent use of information obtained through the Forum and that participation is considered private unless the Participant specifically authorizes identification.

Inquiries may be sent to shfk@shareholderforum.com.

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Shareholder Forum™ is a trademark owned by The Shareholder Forum, Inc., for the programs conducted since 1999 to support investor access to decision-making information. It should be noted that we have no responsibility for the services that Broadridge Financial Solutions, Inc., introduced for review in the Forum's 2010 "E-Meetings" program and has since been offering with the “Shareholder Forum” name, and we have asked Broadridge to use a different name that does not suggest our support or endorsement.