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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
“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.”<\/p>\n