Bankrate shareholder Coatue Management continues to oppose Apax deal

By Lisa Kerner

Charlotte, N.C., Aug. 24 - Bankrate Inc. shareholder Coatue Management, LLC said RiskMetrics Group/ISS recommended that Bankrate shareholders not tender their shares to a group that includes Apax Partners and Bankrate management.

As previously reported, the group is offering Bankrate shareholders $28.50 per share. Bankrate's board unanimously approved the transaction, which is slated to close in the third quarter of 2009.

Apax's tender offer for Bankrate was scheduled to end at midnight ET on Aug. 24.

Coatue, in a letter to Bankrate president and chief executive officer Thomas J. Evans on Monday, said RiskMetrics' report focused on issues raised by the shareholder.

According to Coatue, the deal is structured to benefit the acquirer, the breakup fee is higher than typical and Bankrate was not aggressively shopped.

In addition, "the disinterested director committee did not take primary responsibility for negotiations, did not have separate counsel and declined the opportunity to speak to RiskMetrics about the process," the letter said.

The letter was included in a schedule 13D/A filed with the Securities and Exchange Commission.

Evans "betrayed the existing shareholders" and "should have fought for a better price" or committed to working to get the stock back to the $40.00 range, Coatue said.

Coatue, with a 9.5% stake in the North Palm Beach, Fla., online consumer banking and personal finance network, spoke out against the proposed transaction earlier in the month.

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