In a letter made public last night, the investor – who presents himself as a specialist in personalized family wealth management advice – highlights the “persistent underperformance” of the company’s share price and urges his management to take decisive measures to catch up on its rival Mattel.
According to Ancora, the ‘conglomrate’ type configuration chosen by the group leads to excessive complexity which has resulted in the destruction of value for shareholders, in particular due to under-investment in the role-playing game subsidiary ‘Wizards of the Coast’ , which he considers the true ‘jewel in the crown’ of the company.
The fund is asking Hasbro to take advantage of the recent appointment of a new chief executive – Chris Cocks – to radically renew the board of directors, sell all or part of the content subsidiary eOne and consider a spin-off from Wizards of the Coast.
According to the calculations of Ancora, the Hasbro action would today be undervalued by 75% compared to its intrinsic value.
On the New York Stock Exchange, Hasbro shares reacted to these announcements by rising more than 1% in the first exchanges.
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