Greenlight Capital Objects to Reorganization of MI Developments (MIM)

David Einhorn's Greenlight Capital is vehemently opposed to the proposed reorganization of MI Developments Inc. (NYSE: MIM) that was announced on Monday (the "Proposal"). Greenlight has been a major shareholder of MI Developments ("MID") since its spin-off in August 2003, holding more than 10% of the outstanding shares.

Since the spin-off, MID has failed to execute a business plan to create value for shareholders over any reasonable time frame. Instead, Frank Stronach and his hand-picked board of directors (the "Board") have continued to pour MID money into the failing horse racing business and refused to implement the Board's own proposals for long-term shareholder value-creation. MID has depressed its own share price by implementing value-destroying actions. Now, Mr. Stronach and MID have effectively put a gun-to-the-head of MID shareholders and claim to have indications of support of institutional shareholders holding more than 50% of MID's Class A shares for the Proposal which includes an outrageous payoff to make Mr. Stronach stop his coercive tactics.

Link to press release.
JT