Shareholder suggests sale of eSpeed |
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Fri, 30 Mar 2007 23:21
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NEW YORK (AP) - A 6.4 percent stakeholder in eSpeed Inc. asked the board to consider selling the company to increase return to investors, according to a regulatory filing Friday.WC Capital Management LLC, which owns 1.9 million shares, said the securities-trading software company is significantly undervalued.In a March 28 letter to eSpeed Chairman and Chief Executive Howard W. Lutnick, which was in a filing with the Securities and Exchange Commission, WC Capital Manager Aaron H. Braun asked the board to consider four proposals to increase return for shareholders, including a sale.In addition, Braun asked the board to give shareholders a greater voice by converting Class B shares to Class A to allow a 'one share, one vote' structure. He also proposed the company return capital to shareholders through a special one-time dividend or aggressive open-market buyback.Finally, Braun proposed that eSpeed become more autonomous from former parent Cantor Fitzgerald and Cantor spin-off BGC Partners LP by choosing separate independent directors and accountants.'This will lessen the likelihood that one party is treated inequitably and that appropriate allocation of resources and expenses occurs,' he said.eSpeed shares jumped 31 cents, or 3.4 percent, to close at $9.50 on the Nasdaq Stock Market. The New York-based company's stock has traded between $7.15 and $10.45 during the past 52 weeks.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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