I read over the Sessa Capital March 17 letter to Ashford Hospitality Prime (NYSE:AHP) shareholders, and several things stood out – all of them bad for Sessa Capital.
Sessa Capital was demanding, as early as February, that AHP set its annual meeting. Yet, AHP never had an annual meeting prior to May 2 and never announced that meeting more than 30 days in advance. So why was Sessa screaming for the meeting to occur?
There are two reasons. First, because Sessa Capital is totally inexperienced. Sessa Capital is demanding a company announce and hold its annual meeting far earlier with more advance notice than it ever had before. Because the latest date AHP had held it in previous years was June 10, then it could have at least waited until mid-April to make these demands.
The second reason supports what my contention has been all along: Sessa Capital rushed to buy AHP stock when it originally put itself on the market. Sessa bought it at around $14 or more, then AHP announced it would not be able to sell itself right away, and AHP stock fell back to around $10. Fearing its investors would not tolerate a huge loss, Sessa Capital launched its proxy fight to try and take over AHP and sell it for less than true market value to recover its investment.
Another bizarre statement from Sessa Capital in the letter is that AHP stock has “a poor governance track record…An annual meeting means Chairman Bennett will have to face shareholders and justify the following…” It then lists several items…all of which no longer apply since AHP stock management has reversed itself on all of them. So now, Sessa Capital has nothing to argue.
And how exactly can Chairman Bennett “avoid an annual meeting”? The meeting is required. He faces shareholders no matter what, and he has already supported his position in company mailings and presentations.
The more that AHP stock shareholders really examine and think about Sessa Capital, the more it should be apparent that it has absolutely no idea what it is doing, and should not be permitted anywhere near the Boardroom.
Vote the GOLD PROXY card for AHP stock and re-elect the current slate of nominees.