The Sandon Capital MD - MUST WATCH, page-40

At the end of the day, I'm really after a decent total return.

I don't care if it is dividends and/or share price increase.

With that out of the way, I also don't care if they empire build... but only if it is accretive to shareholders. It is at this point that I run into a problem. Who Datt has been dilutive: from the equity raise to the recent downgrade. If Who Datt wasn't the disaster is has been to date (remember the share price was travelling well), there wouldn't be this public debate. This is all on Board and management.

If Board and management aren't up for acquisitions that benefit shareholders, they should do one thing: return capital.

The big risk now is the market prices them into doing another acquisition that is dilutive. KAR trades at a discount because of Board and management.

The activist are providing shareholders with an opportunity to change the narrative. Do you want a Board and management to continue to do dilutive acquisitions (and continue to trade at a discount) or actually do proper capital management (and close this Board discount)?