Such destruction in value should be expected to lead to dramatic action by management, and if not, then by shareholders. Indeed, shareholders are restless. One of the company's largest shareholders, Snyder Capital Management, has filed a 13-D recommending a specific course of action to remedy the situation. It appears that Metromedia International's current business represents a severe misaggregation of assets. At a minimum, steps ought to be taken immediately to sell or spin off the Snapper division, which you recognize as non-core to the company's strategic direction.
Management appears insulated.
The lack of communication to shareholders is extraordinary. Indeed, despite your very recent commitment to meetings with investors, it has seemed a struggle to get the company to adopt basic mechanisms of investor relations. We believe that the opacity of the company's financial statements is contributing to the difficulty in getting coverage. We are troubled by the composition of the Board of Directors, where five of the nine seats are occupied by employees or affiliates. We believe that a company's Board is the appropriate authority to voice shareholders' concerns and to hold management accountable to shareholders' interests.