Activist Oliver Press Partners: Not Satisfied with Phoenix Companies

Insurance and investment provider Phoenix Companies Inc.’s decision Thursday to sell off an asset management unit is apparently not enough for one activist hedge fund.

Oliver Press Partners LLC, a New York-based insurgent fund, launched a proxy contest to install three director candidates on the Hartford, Conn.-based company’s board earlier this year. The activist fund has been seeking a series of changes at Phoenix Companies. But the decision by Phoenix Companies, announced Thursday, to auction off an investment management division was not enough of a value improvement choice for the activists to call off their proxy campaign.

“We are gratified that the views of leading shareholders have finally convinced the Phoenix board to pursue the first step in our value recovery plan,” the activist fund wrote in a statement. “We are convinced that with the unsuccessful diversion into Asset Management now out of the way, the opportunity is at hand to correct the core issues that have resulted in the declining ratings and low ROE of this company - inefficient capital allocation in the closed book, and excessive cost and overhead structure. We believe that the election of the three nominees that we have recommended at the upcoming annual meeting on May 2, 2008 will best ensure the successful completion of this value recovery program.”

Phoenix Companies has a $1.3 billion stock market capitalization-- Ron Orol