Advocat's most vocal activist shareholder at it again

Los Angeles' Bristol Capital Advisers sends the Brentwood company another angry letter demanding action from management

Email | Print By Walker Duncan

08-07-2007 2:39 PM — Los Angeles-based investment group Bristol Capital Advisors is, once again, nagging Brentwood nursing-home operator Advocat with a list of suggestions.

Yesterday, Bristol sent a letter to Advocat CEO William Council, berating him for the company’s performance. In the letter, Bristol says it is “no longer willing to tolerate a management team responsible for such dramatic value diminution.”

Among the list of demands made by the LA company are for two board seats to be set aside or created to represent institutional investors; for all “golden parachutes” to end; and, for Advocat to hire “a credible investment bank” to evaluate ways to increase shareholder value.

Bristol offered to buy the nursing home company outright, more than a year ago. Since then, Bristol has remained a vocal thorn in Advocat’s side, by making repeated demands that the company slow or halt further acquisitions and instead buyback stock.

Bristol offered $16.80 per share for Adovcat in the summer of ’06. The company’s stock was then trading at just over $16. As of 2:03 p.m. CDT today, shares of Advocat were changing hands for $9.75.