Philadelphia Inquirer—Internet Capital Group Inc., whose market value eclipsed that of General Motors Corp. during the dot-com boom, may face a proxy fight with a hedge fund that contends the holding company is mismanaged.
Mason Capital Management L.L.C., a New York-based hedge fund, said it might seek board seats at Wayne-based Internet Capital. Mason Capital increased its stake to 9.5 percent from 8 percent in December, according to a Securities and Exchange Commission filing.
Internet Capital invests in closely held software companies and expands them so they can be sold or go public, making it akin to a venture-capital or private-equity firm. Its market value soared to $45 billion in January 2000, as investors clamored to get in on up-and-coming e-commerce firms, before crumbling in the subsequent technology bust.
“They did great things during the Internet boom and paid the price on the back end,” said Bradley Mook, an analyst with Boenning & Scattergood Inc., of West Conshohocken. “Now they are rebuilding, and some people feel there are things they should be doing to improve returns in the short term.”
