AN OPEN LETTER TO:
Members of the Board of Directors of
American United Global, Inc.
[Delivered via Fax and Certified Mail, Sat. Sept 12, 1998]
Mr. Robert M. Rubin
Chairman and President
American United Global, Inc.
25 Highland Blvd.
Dix Hills, New York 11746
Mr. C. Dean McLain
President
Western Power & Equipment Corp.
4601 NE 77th Avenue, Suite 200
Vancouver, WA 98662
Mr. Howard Katz
Executive Vice President
American United Global, Inc.
11130 NE 33rd Place, Suite 250
Bellevue, WA 98004
Mr. David Barnes
Executive Vice President
American United Global, Inc.
11130 NE 33rd Place, Suite 250
Bellevue, WA 98004
Dear Sirs:
On behalf of Aliyance Capital, Inc. ("Aliyance"), a shareholder of American United Global, Inc. (AUGI, or the "Company"), I am writing to express our extreme dismay at the continued poor stewardship of our Company. From my informal discussions, this view is shared by other shareholders of AUGI. For several months, beginning long before the recent market downturn, AUGI share value has drifted increasingly lower, and has during this time, continuously traded at a very steep discount to the apparent liquidation value of the Company.
Aliyance is a privately-owned investment company whose principal owners are a prominent Seattle-area investor, Mr. Abdi Naziri and myself. As you know, in August, 1996 I completed the sale of ConnectSoft, Inc., a company which I founded and of which I served as CEO, to AUGI. Aliyance is a shareholder of record, as am I, individually.
We implore the Board of Directors of American United Global, Inc. to immediately take requisite action in the interests of its shareholders so as to realize maximum remaining value from our investment. IT IS OUR STUDIED OPINION THAT, IN THE ABSENCE OF A BETTER ALTERNATIVE, THE BOARD SHOULD INITIATE A LIQUIDATION OF THE COMPANY, IN THE FORM WHICH WOULD MAXIMIZE THE RETURN TO THE SHAREHOLDERS.
By our estimate such action would deliver, as required in the Company's By-Laws, $3.50 for each Series B Preferred Share, and depending upon allowances for litigation and other matters, at least $1.27 for each ordinary share. This is substantially more than Shareholders can reasonably expect to realize from their investment under prevailing conditions.
We also believe that the need for an independent Board and new top management remains strikingly self-evident.
Please initiate efforts on our behalf to effect the above outlined actions. TIME BEING OF THE ESSENCE, WE REQUEST THAT THE BOARD REPORT TO SHAREHOLDERS VIA PUBLIC ANNOUNCEMENT, WITHIN NO LESS THAN TEN BUSINESS DAYS, ON ITS EFFORTS IN THESE REGARDS AND ALSO WITH REGARD TO MONEYS OWED BY MR. RUBIN TO THE COMPANY.
Cordially,
ALIYANCE CAPITAL, INC.
/signed/
Mitchell B. London
President |
