Carlson Capital sent a letter to the board of Information Services Group Inc. (III) early today. Carlson Capital is dissatisfied with the company’s poor performance. “Since the Company’s IPO, the market value of our initial investment in the Company has dropped approximately 87%, severely underperforming both peers and broader indices.” the letter shows. Carlson Capital believes TPI – one of Information Services Group’s operating businesses – is undervalued as an operating subsidiary. The company should take actions to sell this kind of “unnecessary” assets to eliminate the company’s structure.
Carlson Capital also urges Information Services Group to change its board of directors. Three of the five independent Board members have “overseen the tremendous value destruction” without taking any action, Carlson Capital writes. Carlson Capital also requests the company to separate its CEO and Chairman roles.
Carlson Capital is Information Services Group’s largest shareholder with 3,265,090 shares, or 9% activist stake. The firm writes in the letter: “As we have communicated to you (Information Services Group) over the last year, our patience is running out.” (see the full letter)