ValueVision Investor Eyes Changes


Disappointed with the performance of ShopNBC, one of ValueVision International Inc.’s largest shareholders filed documents with the Securities and Exchange Commission stating that it would seek to convince the board of directors of the home shopping channel to change its strategic direction, including a possible sale.

In a 13-D filing with the SEC June 28, Westcap Investors LLC -- which holds about 4.9 million ValueVision shares, or 13.2% of its outstanding stock -- said it had become disappointed with the performance of the company and it is seeking to discuss several options with ValueVision’s board of directors.

In the filing, Los Angeles-based Westcap said it intends to suggest to the board that ValueVision -- which does business under the ShopNBC brand -- either re-evaluate its strategic direction, hire an investment banker to evaluate whether the network should remain independent or seek a buyer, or distribute cash not needed for operations to buy back its stock.

Westcap added in the filing that it could also seek, after the results of its discussions with the ValueVision board are known, a merger or liquidation of ValueVision, the sale or transfer of some of its assets, changes in the makeup of the board, or a change in the dividend policy as an alternative to a stock repurchase.

A ValueVision spokeswoman declined to comment on the Westcap filing.

Investors apparently were pleased, driving the stock up by more than 26% ($2.52 per share) in the days after the filing from $9.42 each June 27 to $11.94 per share June 29. ValueVision stock continued to climb Thursday, rising as high as $12.72 each before settling down to $12.01 in 4 p.m. trading.