Author Topic: BH - Biglari Holdings  (Read 1360545 times)

wescobrk

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Re: BH - Biglari Holdings
« Reply #410 on: January 24, 2014, 05:53:18 AM »
No problem.
I saw the special meeting filing and Cbrl response for April 23rd.
Maybe sardar will end up buying it at some point.


Kuhndan

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Re: BH - Biglari Holdings
« Reply #411 on: January 26, 2014, 03:36:23 PM »
BH 10k came out on Friday. Biglari was paid $14.7 million plus $830,000 for "shared services" by BH for his work at  Biglari Capital in 2013. He also will get his salary at BH plus incentive. Previously his compensation was capped at $10 million, I forget how much  Biglari paid for  Biglari Capital but it looks like he got a pretty good deal.

Parsad

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Re: BH - Biglari Holdings
« Reply #412 on: January 26, 2014, 06:07:13 PM »
BH 10k came out on Friday. Biglari was paid $14.7 million plus $830,000 for "shared services" by BH for his work at  Biglari Capital in 2013. He also will get his salary at BH plus incentive. Previously his compensation was capped at $10 million, I forget how much  Biglari paid for  Biglari Capital but it looks like he got a pretty good deal.

Well, he said he would get around the cap and he did get around the cap...shareholder vote be damned!  Sad example of corporate governance!  Cheers!
No man is a failure who has friends!

OracleofCarolina

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Re: BH - Biglari Holdings
« Reply #413 on: January 26, 2014, 07:06:53 PM »
Yep, it was a good year for Biglari, from the 10-K.

"As the general partner of the investment partnerships, Biglari Capital on December 31 of each year will earn an incentive reallocation fee for the Company’s investments equal to 25% of the net profits above an annual hurdle rate of 6%.  Our policy is to accrue an estimated incentive fee throughout the fiscal year.  The total incentive reallocation from Biglari Holdings to Biglari Capital for calendar year 2013 was $14,702, including $3,655 associated with gains on the Company’s common stock, which is eliminated in our financial statements"

shalab

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Re: BH - Biglari Holdings
« Reply #414 on: January 26, 2014, 08:58:27 PM »
Yep, it was a good year for Biglari, from the 10-K.

"As the general partner of the investment partnerships, Biglari Capital on December 31 of each year will earn an incentive reallocation fee for the Company’s investments equal to 25% of the net profits above an annual hurdle rate of 6%.  Our policy is to accrue an estimated incentive fee throughout the fiscal year.  The total incentive reallocation from Biglari Holdings to Biglari Capital for calendar year 2013 was $14,702, including $3,655 associated with gains on the Company’s common stock, which is eliminated in our financial statements"


...

BH 10k came out on Friday. Biglari was paid $14.7 million plus $830,000 for "shared services" by BH for his work at  Biglari Capital in 2013. He also will get his salary at BH plus incentive. Previously his compensation was capped at $10 million, I forget how much  Biglari paid for  Biglari Capital but it looks like he got a pretty good deal.

Well, he said he would get around the cap and he did get around the cap...shareholder vote be damned!  Sad example of corporate governance!  Cheers!

Looks like he had $25 M this year - not bad. He is on his way to becoming a billionaire.

It looks like the incentive was calculated without taking into account capital gain liabilities if one were to sell CBRL. This BH case should continue to be interesting this year.

OracleofCarolina

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Re: BH - Biglari Holdings
« Reply #415 on: January 27, 2014, 08:06:33 AM »
I just noticed this in the 10-K(a), I did not realize Duane had left, was this announced before?

Duane Geiger, 51, served as Interim Chief Financial Officer of Biglari Holdings from April 2010 to September 2013 and of the Predecessor from July 2008 to April 2010.  Mr. Geiger has also served as Vice President since 2004, Controller from 2004 until January 2012 and in various other positions with the Company and the Predecessor since 1993.

ragu

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Re: BH - Biglari Holdings
« Reply #416 on: January 28, 2014, 09:23:58 AM »
Do you think it's odd he still hasn't sold a share 3 weeks after his intention to do so?

wescobrk,

AFAIK, he has never said he'd sell his stake (aside from tendering in the event of a repurchase). Prior to the CBRL annual meeting, he simply wrote that his pledge to provide a two-week notice to other shareholders before he sold his stake would no longer hold if Cooley and himself were not elected to the board this time.

Quote from: wescobrk
I thought we would have seen a press release with an investment bank he sold his entire stake like ackman did with jcp.

I'd be amazed if he sold his stake in that manner. It would absolutely hurt his credibility in future activist situations and I don't think it's in his nature to take an "out" that isn't offered to all shareholders.

Best,
Ragu

wescobrk

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Re: BH - Biglari Holdings
« Reply #417 on: January 28, 2014, 10:07:39 AM »
"I'd be amazed if he sold his stake in that manner. It would absolutely hurt his credibility in future activist situations and I don't think it's in his nature to take an "out" that isn't offered to all shareholders"

Fair enough. Especially now that the stock dropped from 117 to 99.
He is only about 2 years away from getting around the 5 year TN statute from being able to buy more or the whole company.
If he fails at the special meeting (I'm sure he will based on the votes from the past 3 years) then in 2 years he will have more options on the buy side.

rayfinkle

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Re: BH - Biglari Holdings
« Reply #418 on: January 28, 2014, 11:16:06 AM »
"I'd be amazed if he sold his stake in that manner. It would absolutely hurt his credibility in future activist situations and I don't think it's in his nature to take an "out" that isn't offered to all shareholders"

Fair enough. Especially now that the stock dropped from 117 to 99.
He is only about 2 years away from getting around the 5 year TN statute from being able to buy more or the whole company.
If he fails at the special meeting (I'm sure he will based on the votes from the past 3 years) then in 2 years he will have more options on the buy side.

Can you explain the TN statute? Thanks!

peridotcapital

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Re: BH - Biglari Holdings
« Reply #419 on: January 28, 2014, 01:04:20 PM »
"I'd be amazed if he sold his stake in that manner. It would absolutely hurt his credibility in future activist situations and I don't think it's in his nature to take an "out" that isn't offered to all shareholders"

Fair enough. Especially now that the stock dropped from 117 to 99.
He is only about 2 years away from getting around the 5 year TN statute from being able to buy more or the whole company.
If he fails at the special meeting (I'm sure he will based on the votes from the past 3 years) then in 2 years he will have more options on the buy side.

Can you explain the TN statute? Thanks!

After 5 years from the date Biglari acquired 10% of CBRL (January 2012), he can buy the company if he can get 2/3 of the remaining shares to vote for it. Inside of 5 years, no 10% owner can consummate any business combination with a TN corporation.
« Last Edit: January 28, 2014, 01:33:16 PM by peridotcapital »