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Logo of Bain Capital is screened at a news conference in Tokyo, Japan September 28, 2017. Shares of Estia Health were up 9.9% at A$3.12 as of 0045 GMT, their highest since Sept 2018. Bain Capital did not immediately respond to a Reuters request for comment. In June, the company updated the market on its intentions to back Bain Capital's increased offer of $A3 per share to A$3.20. "If they acquire Estia Health they may be stuck with it in the days ahead."
Persons: Kim Kyung, Estia, Bain Capital's, Gary Weiss, Estia's, Brad Smoling, Smoling, Rishav Chatterjee, Scott Murdoch, Sherry Jacob, Phillips, Stephen Coates Organizations: Bain Capital, REUTERS, Global, Estia, Bain, Virgin Australia, Australia, Health, Thomson Locations: Tokyo, Japan, Sydney, Australia, Bengaluru
"Substantial board change is still necessary," ISS wrote in its report to investors which was seen by Reuters. Still, it is not enough, ISS wrote, adding Pitney Bowes has a "history of failing to deliver on important self-established expectations." "We strongly disagree with the recommendation of ISS that shareholders vote for such an extreme and destabilizing level of change at Pitney Bowes," company spokesman Bill Hughes said. Pitney Bowes is valued at $624 million, down from its peak of $2 billion when CEO Marc Lautenbach joined in 2012. "Shareholders have endured a decade of underperformance and disappointment, there are unanswered questions and serious concerns about the path forward," ISS wrote.
As a result, Hestia often invests in companies that might be misunderstood or not favored by the market, like GameStop, Best Buy and Pitney Bowes. Pitney Bowes' SendTech solutions business is the core enterprise that the company is generally known for: postage meters. The SendTech Solutions segment accounts for 38% of Pitney Bowes' revenue and generated $429 million in earnings before interest and taxes in 2021. Global Ecommerce comprises 46% of Pitney Bowes' revenue but lost $99 million of EBIT in 2021. Hestia will likely need more than just one board seat to drive change at Pitney Bowes.
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