How Wall Street Enabled A Controversial Power Grab At A Wannabe Berkshire Hathaway
ByWhen Sardar Biglari, CEO of Biglari Holdings, won a hotly contested shareholder proxy in April, investors feared his next move would be to cement control over the company. They were right, and a review of Biglari’s actions in recent months shows he did so with the help of leading Wall Street investment banks.
Mr. Biglari gained a name on Wall Street during the crisis for his hand in the turnaround of burger chain Steak ‘n Shake, and his conversion of the NYSE-listed company into a conglomerate modeled after Warren Buffett’s Berkshire Hathaway . But, in recent years his performance has soured, and boardroom moves dictated by Biglari drew shareholder ire, leading to a proxy fight in 2015. Investors accused Biglari ofshuttling corporate assets into a his hedge fund without their approval to gain unwarranted voting power over of the company, while also creating large incentive payouts for overseeing investments that once belonged to them…
How Wall Street Enabled A Controversial Power Grab At A Wannabe Berkshire Hathaway
