Richard McGuire’s Marcato Capital Management disclosed its ownership of 6.5% in the transaction technology company NCR Corporation (NYSE:NCR) in its latest 13D filing, and sought to immediately initiate steps to effectuate McGuire’s request of board representation.
Earlier this month the consumer transaction technology company reduced its outlook for the full year 2014. Of note, NCR’s shares have lost 40% of their value in the past year.
Carlson Capital's Double Black Diamond Fund posted a return of 3.3% net of fees in August, according to a copy of the fund's letter, which ValueWalk has been able to review. Q3 2021 hedge fund letters, conferences and more Following this performance, for the year to the end of August, the fund has produced a Read More
Richard McGuire’s 6.5% stake in NCR
In its 13D filing with the Securities and Exchange Commission on October 21, San Francisco-based Marcato Capital Management disclosed ownership of 10.85 million shares of NCR Corporation (NYSE:NCR), accounting for 6.5% of the company’s outstanding shares.
While unveiling its preliminary third quarter 2014 results on October 20, NCR Corporation indicated that it anticipates 2014 results to be below its previous guidance, primarily due to a challenging retail market as well as difficult global macroeconomic conditions, including foreign currency headwinds. Chairman and CEO Bill Nuti said: “Market conditions within the retail industry worsened in the third quarter, as evidenced by weak same store sales comparisons and financial results”. Moreover, ongoing data security concerns also caused retailers to shift IT priorities, resources, and capital spending.
Seeks board seat
In its statement, Marcato said that on October 14, it proposed to NCR Corporation (NYSE:NCR) that considering Marcato’s substantial equity interest in NCR, its managing director, Richard McGuire III, be nominated to serve as a director on NCR’s board of directors.
In its latest SEC filing on October 21, Marcato indicated that the shares when purchased were undervalued and represented an attractive investment opportunity. The filing added: “given the poor earnings and guidance pre-announced recently, the company might now need to “review options for enhancing shareholder value through various strategic alternatives or operational or management initiatives including, but not limited to, improving capital structure and/or capital allocation, strategic transactions, and general corporate strategies”.
Marcato stressed that, in light of the tech firm’s negative pre-announcement of third quarter 2014 earnings, and lowering of full-year 2014 guidance, Richard McGuire should be immediately nominated to serve as a director on NCR Corporation (NYSE:NCR)’s board.