Market Overview

Reading International Shares Go Crazy After Mark Cuban Discloses Large Activist Stake

Reading International Shares Go Crazy After Mark Cuban Discloses Large Activist Stake

In a recent SEC filing, famed billionaire businessman and TV personality Mark Cuban said he owns an activist stake in Reading International, Inc. (NASDAQ: RDI) (NASDAQ: RDIB), comprising 207,611 shares of Class B Voting Common Stock (representing 13.1 percent of the total Class B shares outstanding) and 72,164 shares of ClassA Nonvoting Common Stock.

This position makes Cuban the second-largest investor in the company in terms of voting power, only surpassed by the shares held by the estate and trusts of the late James Cotter, Sr. who passed last year.

Family Feud

Since Cotter's death, the company has seen itself immersed in a family feud over the administration of the theaters the company operates and the CEO position, which was first taken by Cotter's youngest son, James Jr. who was then replaced by his sister Ellen after a portion of the board essentially fired him.

James Jr. and the company are now involved in a legal battle. And, it seems Cuban wants a say in the whole thing.

Related Link: Filing From Mark Cuban On Reading Intl.

Since the billionaire's stake was disclosed on Monday, Reading’s Class B shares have fallen 2.2 percent, while Class A shares have risen 2.72 percent. The shares seem to keep moving in opposite directions; on Wednesday trading, Class A shares are down more than 1.5 percent, while Class B shares are up more than 2 percent.

Other Stakeholders

While voting stakes in the company are quite limited, there are several major funds that hold nonvoting wages on Reading. For instance, Jim Simons’ Renaissance Technologies last disclosed ownership of 629,100 shares, representing 2.7 percent of the Class A outstanding stock. Other funds betting on the company include Dimensional Fund Advisors (700,242 Class A shares) and Acadian Asset Management (480,325 Class A shares).

Image Credit: Public Domain


Related Articles (RDI + RDIB)

View Comments and Join the Discussion!

Posted-In: Jim Simons Mark Cuban Renaissance TechnologiesNews Hedge Funds Legal Movers General