Unum Group investor says confidence up, but strategic alternatives still an option

By Lisa Kerner

Charlotte, N.C., March 9 - Unum Group shareholders Relational Investors, LLC and its affiliates attribute the undervaluation of the company's stock to its poor operating results and poor forecasting, according to a schedule 13D filing with the Securities and Exchange Commission.

The investors also cite Unum's history of: "repeated, significant, one-time reserve and settlement charges against reported earnings."

Relational Investors' discussions with Unum's management, and a March 5 presentation it made to Unum's board, have increased the shareholder's confidence that the company can achieve its 2007 and 2008 performance targets, the filing stated.

However, in light of Unum's historical performance, coupled with industry challenges and the company's size, Relational Investors believes Unum's board will "have to consider broad strategic alternatives" if the 2207-2008 targets are not met.

Relational Investors beneficially owns 21,291,726 shares, or 6.21%, of the Chattanooga, Tenn., insurance products company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.