Western Sizzlin Sends Letter To ITEX (USA’s Largest Barter Company) Shareholders
January 29th, 2008 · by Bob Meyer · 2 CommentsWestern Sizzlin Corporation Chairman & CEO Sardar Biglari has issued a letter to the shareholders of the ITEX Corporation, see: LETTER
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January 29th, 2008 at 8:45 pm
I don’t believe Western has ITEX’s best interest in mind.
The language in the letter tries to soften the reader in the beginning, making some points in fact and get familiar with the reader.
But midway and toward the end, Western uses language to express an aggressive intent on acquiring ITEX, with less emphasis on the business of ITEX and it’s relationship with exchange members, and more emphasis on Western’s financial merits.
Western gives the impression of a holding company that just wants more and more capital and more money and more,etc. My impression is also that Western cares more for that growth than the quality and integrity of ITEX.
They boast their performances on earnings as if to say that ITEX could not see rapid levels of growth in the future. Western undervalues the power of barter and the potentials ITEX has yet to explore and experience.
It just might serve Western just the same to develop a barter component in their corporate umbrella rather than to purchase a trade exchange outright. It’s a different dynamic that might work better because I don’t think ITEX’s best interest is truly at issue for Western.
I think they are merely intent on buying ITEX. It’s further success being only a byproduct or corporate growth and not a priority. I’d be cautious if I were a shareholder.
That’s my 2 cents.
February 4th, 2008 at 1:41 pm
Sardar Biglari does a poor job of explaining how the merger would create synergy. If he is going to convice this stockholder he needs to share more details.