WCI Communities retains Goldman Sachs to evaluate ways to increase shareholder value

By Lisa Kerner

Charlotte, N.C., Feb. 12 - WCI Communities, Inc. said it has retained Goldman Sachs & Co. to assist the company in considering alternatives to increase shareholder value, which may include the sale of the company.

"Consistent with that commitment, we have asked our financial advisers to help us identify financial, strategic and operational alternatives through a systematic and comprehensive review process," chairman of the board Don E. Ackerman said in a company news release.

"The board will evaluate the options that result from this process and determine whether to pursue any of those options based on their potential to deliver shareholder value."

WCI expects to generate about $1 billion of free cash flow in 2007, mostly from the collection of tower receivables, which will be used to "dramatically" reduce the company's debt.

"We also are exploring the disposition of certain assets, which would further increase liquidity and reduce leverage," president and chief executive Jerry Starkey said in the release.

"Once our receivables are collected and our debt is reduced, we believe our ability to enhance shareholder value through a variety of strategic alternatives, including additional stock repurchases and potentially the sale of our company, will be greatly improved."

WCI is based in Bonita Springs, Fla., and creates master-planned lifestyle communities.

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