Monster Worldwide’s Largest Holder Opposes Sale to Randstad

  • MediaNews Group calls the deal ‘selling at the bottom’
  • MNG sees Monster stock rising to $8 if measures implemented

The largest shareholder in Monster Worldwide Inc. said it opposes the sale of the jobs site to Randstad Holding NV because the $429 million price undervalue’s Monster’s potential value.

“As Monster’s largest shareholder based on publicly available information, MNG believes the $3.40 per share deal would represent the textbook definition of ‘selling at the bottom,’ according to a letter MediaNews Group Inc. wrote to Monster’s board.

MNG said it has an 11.6 percent stake in Monster and urged other shareholders not to tender stock at this time. MNG is encouraging Monster to explore all strategic options, noting that the agreement with Randstad was announced only 50 days after signing a confidentiality agreement. The company plans to exercise appraisal rights if the deal closes.

“It is our understanding that the Randstad deal was not the result of a formal auction process,” said Joe Anto, senior vice president of MNG, in a letter to Monster’s board. “It seemed to come together very quickly, apparently without any attempt to fully market the company in recent months.”

MNG said it believes Monster stock could rise to $6 to $8 over the next 18 months if it takes restructuring measures including cutting expenses by as much as $150 million and simplifying the product offering. Monster rose as much as 9.3 percent intraday to $3.76, the highest since the day the sale was announced on Aug. 9.

Randstad spokeswoman Machteld Merens declined to comment on the letter.

Before it's here, it's on the Bloomberg Terminal.