Voce Capital has launched a website attacking Argo and its CEO Watson
Voce Capital Management, the activist shareholder pushing for change in Argo Group partly by seeking to install a number of independent directors to its board, has launched a new website designed to communicate with other shareholders.
The website - www.Argo-SOS.com – uses the slogan “It’s time to right the ship at Argo”. In a statement on the website, it says: “Argo’s current strategy and expense structure – including shockingly high corporate expenses – is costing shareholders dearly. Voce believes that change is urgently needed and has nominated five highly-qualified, independent director candidates who bring the independence and experience that is desperately needed to rein in management and maximize shareholder value.”
San Francisco-based Voce Capital describes itself as a research-driven investment adviser. It was founded in 2011 by Daniel Plants.
Argo has acknowledged the existence of the website in a filing with the SEC. It also acknowledges that Voce, together with the other Participants, intends to file a preliminary proxy statement and accompanying proxy card with the SEC to be used to solicit votes for the election of its slate of director nominees and certain business proposals at the 2019 annual general meeting of shareholders of the company.
This latest move by Voce follows the remarkable 7,000-word letter it made public on Monday February 25, which heavily criticised Argo’s performance and leadership and launched a scathing and personal attack on Argo CEO Mark Watson III.
Watson owns 2.5 percent of ARGO Group. Other big investors in the re/insurer include The Vanguard Group, Dimensional Fund Advisers, which own around 8.3 percent each, and BlockRock Fund advisers, which owns some 6 percent. Voce owns a 5.6 percent stake in Argo.
Argo offered a swift rebuttal to Voce’s letter in which it looked to dispel many of the allegations made by Voce.
“Argo’s board of directors and management welcome input from all our shareholders and take into account their views. In that spirit, we were looking forward to continuing our dialogue with Voce, but are disappointed that Voce has decided not to engage us constructively. Instead, Voce has sent a letter to shareholders that contains a number of misleading and inaccurate statements and personally attacks the company’s CEO, ignoring Argo’s track record of strong value creation for all shareholders,” it stated.
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