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  "documentTitle": "Stroer SE & Co. KGaA (SAX)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2016-04-21 00:00:00",
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  "notes": "The slide uses a narrative structure to challenge the company's stated rationale for structural changes and board composition.",
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      "text": "In our opinion, Ströer's board of supervisors is oddly devoid of truly independent supervisors.",
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      "text": "Ströer’s CFO Bernd Metzner is on the board of directors of Anavex Life Sciences (Nasdaq: AVXL), a microcap development stage biotech company. Metzner chairs all of the company’s board committees: audit, compensation, corporate governance, and nominating. Anavex is a controversial company, and received a subpoena in December 2015 from the United States Securities and Exchange Commission. Anavex “believes the subpoena and investigation relate to the recent unusual activity in the market for the Company’s shares.”",
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      "text": "In our opinion, Ströer’s board of supervisors is oddly devoid of truly independent supervisors. In December 2013 – at the time Ströer agreed to acquire freeXmedia and the Ströer Digital Group from Media Ventures (owned 51% by Dirk Ströer and 49% by Udo Müller) – two directors left Ströer’s board. In October 2014, Ströer further slimmed its board to three supervisors: Dirk Ströer, Ulrich Voigt (as of November 2014), and Christoph Vilanek. Mr. Vilanek was the CEO of freenet at the time Media Ventures acquired freeXmedia from it. The circumstances surrounding the chain of ownership from freeXmedia to Media Ventures, and then to Ströer give rise to concerns about Mr. Vilanek’s independence from Mr. Müller and Mr. Ströer.",
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      "text": "We are struck by the timing of Ströer's transition to a SE & Co. KGaA so soon after becoming a SE. Ströer provided the following reasons for the change: “strengthen Ströer SE’s financing ability on the capital market and facilitate possible attempts to raise capital in future and thereby the company’s further development whilst preserving Ströer SE’s position as a family company.” The articles of association of Ströer SE & Co. KGaA specify that the General Partner, who is controlled by Dirk Ströer and Udo Müller, will retain control of the company as long as its shareholders jointly hold at least 10% of the company’s share capital. This helps to entrench them in a control position over Ströer, even if they significantly decrease their shareholdings. We do not see this as beneficial to outside investors.",
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      "text": "strengthen Ströer SE's financing ability on the capital market and facilitate possible attempts to raise capital in future and thereby the company's further development whilst preserving Ströer SE's position as a family company. — Ströer Transformation Report",
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      "text": "References 135-143 detailing corporate reports, SEC filings, and news sources.",
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      "kind": "title",
      "text": "Constantly Shifting Supervisory Board Membership",
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      "kind": "title",
      "text": "Ströer CFO Involved with Questionable U.S.-listed Company",
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