Huntingdon Would Axe KEYreit's Bitove
Huntingdon Capital' s takeover bid for KEYreit proposes a shake-up including terminationof CEO John Bitove (pictured), reconstituting the board, and possibly selling properties or reducing payouts. KEY has 227 mostly small-box restaurant properties coast-to-coast. But analysts say KEY is both overleveraged and issuing distributions too generous to be sustainable. Dundee Capital yesterday raised its KEY target price 50 cents to $7 a unit, matching the price Huntingdon offered in its hostile bid last week. A note from analyst Yashwant Sankpal said KEY might pursue a "white knight." Huntingdon owns 5.4% of KEY and is seeking an additional 45%. CIBC analyst Brad Sturges declined to comment on KEY but raised his target price from $5.75 to $7 since last week's chase started.