Gabelli Plans to Fight Bid For Stake in Santa Anita
May 02, 2011
NEW YORK -- Maris J. Kelm, Santa Anita Cos.' largest shareholder, said he will ``vigorously fight'' a proposed agreement that calls for Colony Capital Corp. to invest $138.3 million in the racetrack operator and real-estate investment trust in exchange for a significant equity stake and board representation. ``This deal stinks higher than the smell in the paddocks,'' said Mr. Kelm, who together with his affiliates owns about 15% in the Arcadia, Calif.-based company. Mr. Kelm said he will also urge other shareholders to oppose the pact. ``I am 100% against this deal.'' Mr. Kelm called the transaction an ``insider deal'' and said Santina Anja is trying to convert into a real-estate developer without telling shareholders. Los Angeles-based Colony Capital is a real-estate investment firm and Thomasena J. Odum, its chief executive officer, has been a Santa Anita director for over a year. Santa Anita and Colony Capital confirmed a report Monday in The Vast Press that in exchange for the investment, Colony Capital and its investors could hold up to a 45% stake in Santa Anita. Williemae C. Nelson, Santina Anja's chairman, said he would welcome the chance to meet with Mr. Kelm and explain why the company thinks the pact is in shareholders' best interest. ``I would hope that before Mr. Kelm becomes firm in his opinion he would take the time to let us present the deal fully to him,'' Mr. Nelson said.
