Lakeview Issues Open Letter To Pitney Bowes' Board Of Directors Calling For Expeditious Sale Of GEC
Portfolio Pulse from Benzinga Newsdesk
Lakeview Investment Group & Trading Company, LLC, holding approximately 2.55% of Pitney Bowes Inc. (PBI) shares, issued an open letter urging PBI's Board to sell its Global Ecommerce (GEC) unit. Lakeview argues this sale could significantly reduce PBI's leverage ratio, potentially double its share price, and address the ongoing issue of leadership turnover. They believe divesting the money-losing GEC could enhance shareholder value by improving net income and balance sheet health, suggesting the company could then focus on debt reduction and share repurchases.
April 30, 2024 | 1:10 pm
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POSITIVE IMPACT
Lakeview Investment Group's call for the sale of Pitney Bowes' GEC unit and leadership stabilization could lead to significant changes in PBI's financial structure and market perception. The potential divestiture of the GEC unit, aimed at reducing leverage and possibly doubling the share price, alongside the call for permanent leadership, indicates a push for strategic shifts to enhance shareholder value.
The recommendation to sell the GEC unit is based on its financial drain on Pitney Bowes, costing shareholders over $100 million annually. By divesting this unit, PBI could significantly improve its financial health, potentially leading to a higher share price. The call for leadership stability further underscores the need for strategic consistency and focus, which could positively influence investor confidence and stock performance.
CONFIDENCE 80
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RELEVANCE 100