Fir Tree Sent A Letter To Chinacast Education, Requesting To Postpone Annual Meeting

Fir Tree discloses its letter to Chinacast Education Corp (CAST) today. According to the filing, Fir Tree sent a letter on December 13, 2011 to the Board of Directors of Chinacast Education Corp, requesting that “the Annual meeting of Stockholders be postponed to allow stockholders sufficient time to process and understand the information now in the public domain.” Furthermore, Fir Tree believes Chinacast’s certain actions have not complied with the letter agreement, dated as of June 27, 2008.

Jeffrey Tannenbaum

Fir Tree also reports its 13.2% or 6.45 million shares activist stake in CAST, which is unchanged since the end of June. Here is the letter:

Dear Members of the Board:

Fir Tree Inc. (“Fir Tree”) has been a long term investor in ChinaCast Education Corporation (the “Company”) with the goal of maximizing stockholder value in the Company. Fir Tree has reviewed recent filings made by the Company and Ned Sherwood with great concern. In light of the public statements made by both the Company and Mr. Sherwood over the last week and filing of a proxy statement today by Mr. Sherwood with a proposed new slate of nominees for the Board of Directors, Fir Tree strongly believes that holding the Annual Meeting of Stockholders (the “Annual Meeting”) on December 21, 2011 is no longer an appropriate or sensible course of action as stockholders need additional time to process and understand the information now in the public domain and evaluate the proposed Board nominees. Accordingly, Fir Tree requests that the Annual Meeting be postponed to allow stockholders sufficient time to determine what is in the best interest of the Company.

We further note that if Mr. Sherwood’s allegations are true, we would have great difficulty discerning the Company’s basis for declaring, as it did in its proxy supplement of December 8, 2011, that Mr. Sherwood is not a “Suitable Person” for re-election to the Board as defined in the Letter Agreement, dated as of June 27, 2008, by and among the Company, Fir Tree Value Master Fund, L.P., and Fir Tree Capital Opportunity Master Fund, L.P. (the “Fir Tree Agreement”). Moreover, the apparent change in heart by the Company with respect to our designee between the filing of the definitive proxy statement on November 14, 2011 and the filing of the proxy supplement on December 8, 2011, without any changes in the facts relating to our designee qualifying as a “Suitable Person” in the interim, is inexplicable. Finally, the Fir Tree Agreement contains no provision entitling the Company to take the actions it did in connection with the proxy supplement irrespective of whether Mr. Sherwood is a “Suitable Person.”

We are hopeful the governance issues currently facing the Company can be resolved expeditiously, but we believe this would be better done through a process that allows consideration by stockholders of the options facing the Company to determine the best path forward for the Company, without undue haste.

Yours sincerely,

David Sultan

Managing Director

Fir Tree Inc.

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!