Elliott Management Buys Stake In American Capital; Opposes BDC Assets Spin-off

(RTTNews) - Activist hedge fund Elliott Management Corp., which manages funds that hold an about 8.4% stake in American Capital, Ltd. (ACAS), said it has filed a presentation with the SEC urging ACAS stockholders to vote against the company's proposal to spin out BDC assets. American Capital is a private equity and venture capital firm.

Elliott said it has also created a website, www.BetterACAS.com, where ACAS stockholders and other interested parties can view the presentation and other materials regarding the Proposal's details and implications.

In conjunction with this filing, Elliott has sent a letter to the board of American Capital, proposing a five-step plan to increase stockholder value.

The plan includes withdrawing the spin-out proposal, reviewing portfolio and capital allocation, strengthening the company's board, cutting overhead costs and engaging in a meaningful strategic review to maximize shareholder value.