Mr. Pink's Picks: selected event-driven value investments Message Board

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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments

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To: Mad2 who wrote (16371)	2/28/2002 1:00:36 PM
From: Mr. Pink	Read Replies (6) of 18998

Who is this masked man? WASHINGTON (Dow Jones)--A group led by Daniel Loeb reported a 5.6% stake in Penn Virginia Corp. (PVA) and is urging its chief executive to manage operations so that it maximizes its stock's value, according to a Schedule 13D filed Thursday with the Securities and Exchange Commission. The group beneficially owns 500,000 common shares, which it purchased between Feb. 14 and Tuesday for prices from about $27.24 to about $33.64 a share. "Do not confuse our investment as a vote of confidence in management's ill-conceived acquisition and exploration strategy," the group said in a letter dated Wednesday and addressed to Penn Virginia Chief Executive A. James Dearlove. "Rather, we believe that Penn Virginia is asset rich and trades significantly below its intrinsic value." The group encouraged the company to refrain from further "dilutive" oil-and-gas acquisitions; to "drastically" cut back on its drilling program; to contemplate the sale of some or all oil-and-gas assets; to use the cash flow freed up to repurchase company stock in the open market; and to increase its value via its general partnership interest in Penn Virginia Resource Partners L.P. "Although we applaud the separation of the company's coal and timber assets into a separate public entity, Penn Virginia Resource Partners L.P., in which the company owns roughly half the units and retains a general partnership interest, we believe that this transaction represents only an initial step to value creation for shareholders," the letter said. "The next step is to deploy the company's free cash flow in a way that immediately reduces the value gap between the company's share price and its intrinsic value." (MORE) DOW JONES NEWS 02-28-02 11:31 AM- - 11 31 AM EST 02-28-02

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