[June 25, 2014] |
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Anworth Mortgage Asset Corporation Continues to Disappoint Stockholders and Fails to Stand behind Its Commitment to Aggressively Repurchase Shares, According to Western Investment
NEW YORK --(Business Wire)--
Western Investment LLC ("Western Investment") today criticized the
failure by the directors and management of Anworth Mortgage Asset
Corporation ("Anworth") to stand behind its commitment to aggressively
repurchase shares of Anworth in order to increase value for all
stockholders. In an investor presentation on May 2, 2014, Anworth stated
that it has taken and continues to take actions to increase shareholder
value, including through its aggressive buyback program. Anworth also
stated they increased their ongoing share repurchase program by
10,000,000 shares, and in fact disclosed that in April 2014 nearly
5,000,000 shares had beenrepurchased. Western Investment is concerned
that Anworth has now drastically curtailed its buybacks.
Not surprisingly, Anworth's stock price has experienced a recent
decline, down over 5% from its 12 month high. Art Lipson, managing
member of Western Investment, stated, "Western Investment is a
significant stockholder in Anworth Mortgage Asset Corporation. We are
disappointed in Anworth's continued poor share performance, which
recently traded at nearly an 18% discount to book value. We remain
concerned that Anworth's recent buyback activity was primarily
undertaken because Anworth was faced with a proxy fight and now that the
proxy battle is over, the board and management are less committed to
taking action that is in the best interests of its stockholders."
Mr. Lipson continued, "Given this Board's and management's historical
failure to produce strong results and maximize stockholder value, we
continue to have serious doubts concerning their commitment to reduce
the discount to book value. Western Investment will continue to monitor
Anworth's actions and may submit a shareholder proposal in the future to
address the excessive discount to book value."
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