The dissident shareholder who is trying to throw out the board of Western Wind Energy Corp. has been handed a split decision from the two powerful proxy advisory firms that tell many mutual funds how to vote their shares. Meantime, the company says it expects to sell for a very hefty premium.
Glass Lewis & Co. declined to support Savitr Capital’s plan to install new directors at Western Wind. However, bigger rival Institutional Shareholder Services has now thrown its weight behind Savitr’s proposal. The advisory firms help big investors decide how to vote in proxy battles, so their support is highly sought after.
Western Wind and Savitr agree on one thing, that the company should be sold. They disagree on who should run the process. Savitr has proposed its own slate and financial advisers, and Western Wind is working on a sale plan under its current board and management.
Western Wind chief executive officer Jeff Ciachurski told Bloomberg News that the company wants at least $3.75 a share, and as much as $4.50 at the top end of the range, which would be close to double the current share price. He said there are 16 potential buyers.
The meeting where this will all be decided is set for Sept. 25.