Houston Chronicle Covers

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Houston Chronicle: How a sleepy Texas trust turned into Permian oil proxy war

The trust also hired a public relations firm and proxy contest lawyers, paid for advertisements in support of Cook, and launched a website, TrustTPL.com, to state the case for keeping the trust intact.

Kai Liekefett, Texas Pacific Land Trust’s attorney, blamed the proxy fight on the rise of investor activists — the hedge funds and other large investors who take large stakes in companies and pressure management to take steps to boost share prices. The hedge funds, he said, are interested in selling the water business or even the entire trust to reap a short-term financial windfall.

“It makes perfect sense for them. It may not make sense for the other 75 percent of shareholders who enjoy the out-performance and ongoing appreciation,” said Liekefett, who recently represented financially struggling Luby’s in the Houston restaurant operator’s fight against a hedge fund. “This is not mere luck. This is the result of very seasoned and strategic leadership.”

 

 

6 thoughts on “Houston Chronicle Covers”

  1. what a joke.

    “It makes perfect sense for them. It may not make sense for the other 75 percent of shareholders who enjoy the out-performance and ongoing appreciation,” said Liekefett, who recently represented financially struggling Luby’s in the Houston restaurant operator’s fight against a hedge fund. “This is not mere luck. This is the result of very seasoned and strategic leadership.”

    Longest share holders versus some yokels who have no skin in the game. Everyone benefits from the change. The only ones in my opinion who don’t are the trustees and the job for life CEO & CFO.

    It becomes tiring to read all the one sided material. I worry, that’s the whole point. If decisions come to a jury all this material makes for a skewed view. Or hell, even for a judge.

    I hope not.

    Like

  3. By votes it’s already well more than 25%, and a hell of a lot more than the votes for Cook. Also referring to us as “dissidents” is incorrect. Please refer to us as majority shareholders, because that’s what we are.

    Liked by 2 people

  4. Craig Hodges was on CNBC this morning and recommended TPL as a stock pick. He is “confident” the company will turn into a C-Corp. TPL Strong!

    Liked by 1 person

  5. BG – Thanks for that nugget; I have been wondering what Hodges thought of this whole situation with TPL and I’m relieved to hear he is still bullish. We’ve all been so caught up in the proxy drama that it’s easy to lose sight of the real question: once the dust settles, is TPL value better off or worse off in the short and long run. As long as no major impropriety is exposed in the financials, I’d say this proxy battle has illuminated that there is potential for so much hidden value in TPL to be quantified to send the stock soaring to new heights. I’m holding tight.

    Liked by 1 person

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