UPDATE Elliott Associates, the billion dollar investor in Crown Castle (CCI) who recently sent a disgruntled letter to the company on July 6, about various strategies, followed up on their missive yesterday. The full letter released Monday can be seen here.
“Since releasing our letter and presentation on July 6th, we have had
the opportunity to exchange views with many shareholders, prospective shareholders and equity research analysts.
As a result of these conversations, we believe there is broad-based consensus that Crown Castle must address the following three questions without delay:
- How should Crown Castle’s overall success be measured?
- How should investors analyze whether the company’s fiber and small cell strategy is working?
- Who is best to oversee the company to ensure accountability on these measures?
Regarding all three of these questions, we believe the feedback we have received points to an urgent need for near-term action to provide investors with more clarity, improved accountability and ultimately a path to greater value.”
Crown responded to the July 6 letter expressing confidence in its actions and stating, “the strategy is playing out exactly as we thought.” Elliott responded that Crown compared its performance against the broader REIT index and the S&P 500 rather than its direct peers with comparable assets. The new letter states they believe Crown Castle owes the investment community “a robust plan and appropriate disclosure of actual, quantitative metrics to justify its most important capital allocation decision in the last decade.”
The letter attempted to end on a positive note stating Crown Castle “has a great opportunity to become the best performer of its peers, and we believe our recommendations position the company to achieve that.”
With that said, the investment company said they expect answers on CCI’s Q2 earnings call on July 30.