Activist investor pressures Alaska Communications to sell
Karen Singer is no stranger to investing in telecommunications companies, then calling out company leaders -- and now she's going after the CEO of Alaska Communications.
In documents filed with the Federal Securities and Exchange Commission Singer says the company's current CEO, Anand Vadapalli, should be "terminated." She criticizes his salary, saying that he recently sold a "significant" amount of stock and that he commutes to Alaska at the cost of shareholders.
At the beginning of December Alaska Communications announced it will cut 30 people, about 5 percent of its workforce.
Singer recently bought more than 2.6 million shares of Alaska Communications stock, or roughly 5 percent of the company's shares. In the SEC filing, Singer says she is the sole member of TAR Holdings. She says TAR Holdings and its representatives have reached out to management saying they should sell the company or certain assets, "in order to maximize value for [Alaska Communications] shareholders."
In a statement to KTVA 11 Friday, Alaska Communications said, "We are committed to creating value for all our stakeholders – employees, customers and all our stockholders. We will continue to make decisions and take actions that further these objectives."
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