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TCS Capital Management Urges Angie’s List Inc (ANGI) To Pursue Merger; Plus Latest Moves by MFP Investors and Orange Capital

In three separate filings with the Securities and Exchange Commission, Eric Semler’s TCS Capital Management, Michael Price’s MFP Investors and Daniel Lewis Orange Capital disclosed their latest moves regarding Angie’s List Inc (NASDAQ:ANGI), S&W Seed Company (NASDAQ:SANW), and Bellatrix Exploration Ltd (NYSE:BXE), respectively. Eric Semler’s TCS Capital, in an amended filing, disclosed a letter it sent to Angie’s List’s Board of Directors and Chairman John H. Chuang, urging the company to pursue a merger. In another filing, MFP Investors revealed upping its position in S&W Seed to 2.93 million shares compared to 1.29 million shares the investor held at the end of the third quarter. In the third filing, Orange Capital reported that its standstill agreement with Bellatrix Exploration Ltd (NYSE:BXE) expired on Nov. 30.

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In a letter to Angie’s List Inc (NASDAQ:ANGI)’s board, Mr. Semler of TCS Capital states that the company should consider a merger with IAC/InterActiveCorp (NASDAQ:IACI)’s HomeAdvisor, which the investor believes would lead the company’s shares to trade at $20 a share or higher. He wants the board to immediately hire a financial advisor to pursue strategic alternatives, including a public offer from IAC. Further, Mr. Semler states that he rejected an offer for a seat on Angie’s List’s board, noting that he would rather “avoid the onerous standstill provisions that the board demanded for his appointment.”

According to the filing, TCS Capital holds 6.25 million shares of Angie’s List, equal to 10.7% of the company’s common stock. The stake represents an increase from the 5.33 million shares the fund held previously. During the third quarter, the fund boosted its position in Angie’s List by around 70%. Angie’s List is a consumer review company, which recently rejected a $512 million purchase offer from IAC. The company’s stock has increased by an impressive 73.52% year-to-date. Another investor that loves Angie’s List is Ken Griffin’s Citadel Investment Group, which held 739,505 shares as of the end of the third quarter.

Eric Semler
Eric Semler
TCS Capital Management

On the next page, we will talk about the latest moves made by MFP Investors and Orange Capital.

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