Bell Rock gets personal in Whitehaven media blitz
Bell Rock is ratcheting up pressure on Whitehaven's CEO and board but it's unclear whether its campaign is resonating with other investors.
Activist UK hedge fund Bell Rock is escalating its campaign against Whitehaven, launching a new media blitz over the company’s proposed acquisition of BHP’s Daunia and Blackwater coal mines.
But it's unclear whether the campaign is resonating with other shareholders, with one large individual investor contacted by Capital Brief backing the company and an influential proxy advisory firm also issuing advice that conflicts with Bell Rock's arguments.
On Thursday, Bell Rock wrote directly to every Whitehaven shareholder urging them to rally against the possible $5 billion deal and warning that management was putting shareholder returns and future income at risk.
“Under WHC’s current plan, the company could destroy the share price, cancel or reduce dividends, stop the share buy-back, and still pay a healthy bonus to management,” Bell Rock chief investment officer Michael O’Mara wrote in the letter obtained by Capital Brief.
