Gamco reduced its stake in Lennar Corporation (LEN)
Key Summary: Lennar Corporation (Market Cap: $22.7B in 2020) faced ongoing activism from Gamco over its voting structure and stock price discount between Class A and Class B shares. Gamco's proposals to alter the voting structure were rejected in 2017 and 2018 AGMs. Gamco gradually reduced its stake from 11.22% in 2017 to 7.08% by November 2020.
Market Cap: $39.3 billion | Lennar Corporation provides real estate-related financial services, commercial real estate, investment management, and finance.
- On March 29, 2017, Gamco (11.22%) stated that it intended to vote in favor of maintaining the existing voting structure and would vote with the Board of Directors’ recommendation against the stockholder proposal requesting all outstanding stock have one vote per share. Source
- At the AGM held on April 18, 2017, shareholders did not approve Gamco’s proposal regarding the company’s common stock voting structure. Source
- On August 2, 2017, Gamco stated that it continues to evaluate the submission of a stockholder proposal and may also discuss with the company other alternatives to eliminate the discount between LEN.B and LEN. As of the close of trading on August 2, 2017, the Class B Common Stock (10 votes per share) was selling at $45.73, while the Class A Common Stock (1 vote per share) was selling at $53.87. Source
- On January 9, 2018, Gamco reduced its stake to 10.24%.
- On March 20, 2018, Gamco (10.09%) sent a letter to ISS discussing the ISS Proxy Analysis & Benchmark Policy Voting Recommendations report regarding the company's 2018 Annual Meeting of Stockholders.
- At the AGM held on April 10, 2018, shareholders did not approve Gamco’s proposal regarding the company’s common stock voting structure.
- On October 23, 2018, Gamco reduced its stake to 9.09%.
- On July 26, 2019, Gamco reduced its stake to 8.08%.
- On November 3, 2020, Gamco reduced its stake to 7.08%.
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