Rithm Capital is standing firm with its original bid for Sculptor Capital Management and has dropped plans for an improved offer after Sculptor founder Daniel Och — who remains one of Sculptor’s largest shareholders — welcomed a rival proposal from a high-profile hedge fund consortium led by Saba Capital founder Boaz Weinstein as “more attractive.”
The latest twist in the increasingly acrimonious wrangle over Sculptor, formerly known as Och-Ziff, has seen real estate-focused investment manager Rithm halt negotiations with Och, who had been a vocal critic of the planned $639 million purchase agreed on in July.
The protracted battle has seen $34 billion hedge fund Sculptor accuse Daniel Och of pursing “personal vendettas” stemming from his “longstanding resentment” from his ousting from the company.
Och, who still holds a 12.5% stake in Sculptor, having left in 2019, said Rithm’s initial $11.5-per-share offer undervalued the company, and considers the Weinstein-led bid — sized at $13 per share — as “more attractive,” according to media reports.
After Weinstein’s rival offer emerged last month, Rithm was said to be strengthening its bid to $12.20 per share in order to persuade Och to back its plans. But with Och keen for Sculptor to consider the rival Weinstein proposal, Rithm has now opted to “discontinue engagement” with Och.
Sculptor last month said the unsolicited Weinstein bid — which also involves Bill Ackman, Marc Lasry and Jeff Yass — carried “significantly higher execution risk for Sculptor’s stockholders than the Rithm transaction,” though it is reportedly still weighing up the offer against potential Rithm improvements.