Raging CapitalManagement LLC on March 30 said it is pleased that has entered into support agreements withshareholders and fully supports Ambac board's recommended slate of directors upfor election at the upcoming annual meeting.
Raging Capital is the beneficial owner of approximately 1.1 millionshares, or 2.4% of Ambac's outstanding shares. The investor was not a party to thesupport agreements that were signed by Ambac shareholders holding an aggregate of18.5% of the outstanding shares.
Raging Capital said it believes that the board changes that resultedfrom those agreements, especially the additions of Ian Haft and David Herzog tothe board, are in the best interests of Ambac and its shareholders. The investoralso believes that Ambac is "attractively positioned" to unlock shareholdervalue and said that the recent board and management changes will help drive furthervalue realization.
Raging Capital further expressed hopes that activist investorCanyon Capital Advisors LLCwill terminate its proxy contestand will support the newly constituted board.
In a separate March 31 news release, Ambac said it appreciatesRaging Capital's support and stated that Canyon Capital's personal on Ambac CEO Nader Tavakoli are merelypart of its campaign to deflect attention from its conflicted position as a creditor,noting that Canyon Capital's debt interest is 10x that of its equity interest.
"We believe Canyon's attack on Mr. Tavakoli is reprehensibleand deserves no further response at this time," Ambac said in its news release.