Phoenix Company has activist shareholder

[The Voice of Reason]

they are seeking 3 seats on the board and want PHX to sell their investment management division as well as sell some of their oldest and most mazture assets. I am pretty sure these guys are looking for a quick gain. I hope not. I hope PHX is able to fix their numbers to keep investors happy and grow stronger as a company and of course grow in size. this city needs more companies their size.

[ctman]

they are seeking 3 seats on the board and want PHX to sell their investment management division as well as sell some of their oldest and most mazture assets. I am pretty sure these guys are looking for a quick gain. I hope not. I hope PHX is able to fix their numbers to keep investors happy and grow stronger as a company and of course grow in size. this city needs more companies their size.

[The Voice of Reason]

The biggest problem for them in IM is the garbled way in which they organize it. They own no less than 6 brands, and 6 structures in several locations. I think their IM operations are generally not located in Hartford, and well in my opinion that is a shame. I think if the company aggressively merged funds and created a more efficient system they could consolidate their operations to create significant savings, and turn around this failing business. The problem is that I think they are hoping it will right itself without taking any drastic action.

The end result would and possibly should be that they divest themselves of half of their IM brands and consolidate the ones most easily integrated. I would prefer if they consolidated IM in Hartford. The gains made from the divestment could help fund growth in their core business and their IM unit would stop bleeding and begin an organic growth period.

Share holders happier, management happier, and Hartford happier.

[The Voice of Reason]

Phoenix will spin off their asset management business.

SNIP*

Phoenix Investment Partners, which was built with a series of acquisitions, will remain somewhere in the Hartford area after the spinoff, said Dona D. Young, Phoenix Cos. chairman, president and chief executive. The location hasn't been determined.

SNIP*

The spinoff, which would be tax-free to shareholders, isn't expected to result in layoffs at Phoenix Investment Partners. But an undetermined number of job cuts elsewhere in The Phoenix Cos. is likely.

SNIP*

Very interesting stuff going on at a key Hartford company. I really hope this allows the core life business to grow significantly. At the same time the asset management business will have a hard time without help from its parent company. at 40B AUM they are an easy pick up for any larger player, but its possible that the one thing that has held them back will keep them independent. its would be a huge pain in the butt to integrate all of their units into any company. and I think the seperated unit will be able streamline itself

Looks like those activists are starting to get their way.

http://www.courant.com/business/hc-phoenix...0,5376328.story

[The Voice of Reason]

A spinoff "makes Phoenix's insurance and asset management operations cleaner acquisition targets," UBS analyst Andrew Kligerman wrote in a note to clients early Thursday.

http://www.courant.com/business/hc-phoenix...0,6097226.story

[MadVlad]

This isn't good for Phoenix, it's potentially good for major shareholders. I hate reading stories like this.

[The Voice of Reason]

This isn't good for Phoenix, it's potentially good for major shareholders. I hate reading stories like this.