DRI protests Bluegreen buyout agreement

[timeos2 Senior Member Find all posts View Profile Close timeos2]

So DRI has made another play to take over Bluegreen. If they keep up the pressure they just may succeed. That will an interesting development if/when it occurs. A real sea change for owners if their past acquisitions are any example. Let the games begin! Meet the new boss same as the old boss...

http://finance.yahoo.com/news/diamon...173800993.html

[VA_Traveller Senior Member Find all posts View Profile Close VA_Traveller]

So DRI has made another play to take over Bluegreen. If they keep up the pressure they just may succeed. That will an interesting development if/when it occurs. A real sea change for owners if their past acquisitions are any example. Let the games begin! Meet the new boss same as the old boss...

http://finance.yahoo.com/news/diamon...173800993.html

Other than the name, I am not familiar with DRI at all...anyone care to venture what changes could be expected if they did indeed take over BG?

[wilson22447 Member Find all posts View Profile Close wilson22447]

M. fees will increase, but quality where needed will increase, also. I was a Sunterra owner when DRI took over. Overall, I am satisfied because of the improvements. I have never stayed at a Bluegreen resort, but if they are not first class or close, they will be if DRI takes over.

[djyamyam Senior Member Find all posts View Profile Close djyamyam]

Who's BFC Financial?

In reading the Diamond press release, it sounds as if it's coming from an individual as opposed to a company in terms of how it is written - definitely not corporate speak. Wouldn't be surprised if Cloobeck wrote it himself.

[billymach4 Super Moderator Find all posts View Profile Close billymach4]

I am not impressed with Glueback ever since that undercover boss episode on CBS. He is a classic egomaniac. Selfish, loathing, moronic, imbecile.

Yes I agree that PR appears to be written by one of his associates. It is no wonder the BG Board of Directors is evading and fighting his takeover. I applaud the BG Board of Directors.

[chriskre Super Moderator Find all posts View Profile Close chriskre]

Does this mean that my CMV cottage will now become a palace?

[timeos2 Senior Member Find all posts View Profile Close timeos2]

Does this mean that my CMV cottage will now become a palace?

They may but if they did you can be sure it would be out of your pocket - DRI loves to improve resorts - a positive thing - take the full credit for doing so - questionable - but fund it all from the owners. They also look to take over management and usually make a strong play for control of the Board. It is a decidedly mixed bag of results but overall we have been OK with being in the DRI Club. I am VERY glad we never ceded our deeded ownership to any of the trust's as doing that leaves you with no meaningful voting rights and nothing of value to sell when you're ready to move on.

[bnoble Senior Member Find all posts View Profile Close bnoble]

Just out of curiosity, who else but the owners should be paying for improvements?

It's one thing if they are unwanted---and in some cases, they may be. But even so, if they are done, I can't see why it should be done on anyone else's dime.

[timeos2 Senior Member Find all posts View Profile Close timeos2]

Just out of curiosity, who else but the owners should be paying for improvements?

It's one thing if they are unwanted---and in some cases, they may be. But even so, if they are done, I can't see why it should be done on anyone else's dime.

I agree it is the responsibility of the owners to pay, no question. But as you note they may not want the type of "improvements" DRI likes to see (as they tend to be more sales related than actual enhancements in too many cases) and the fact that everything you see or hear makes it sound like DRI is writing the checks for the work. It is that type of deceptive move that makes it all seem tainted. Give credit where it's due. If they come up with the plan then say it's their idea. People appreciate a pro-active management that improves their resort. If the owners actually pay to get it done than say the OWNERS paid not insinuate that it's DRI money being spent.

[SallyHoover Senior Member Find all posts View Profile Close SallyHoover]

Does this mean that my CMV cottage will now become a palace?

I forgot about CMV being under the bluegreen umbrella. Remember when Bruce wrote about the upcoming assessments being more reasonable. I don't know if that will be the case if DRI has their say. And they seem very big on getting their say. I think DRI has a case of Marriott envy and feels the need to get their acquisitions up to the "DRI standard". My guess is if you get a more reasonable upgrade passed before DRI takes over it won't be long before they feel they need to make another upgrade. If they take control before, I imagine they will gut one cottage and upgrade it to the 9's and then try to unilaterally impose the upgrades on everyone. MF will rise. DRI will pressure owners to convert to points (instead of a special assessment of X you will get a special assessment of Y) and when they don't they will make sure that the upgrades happen on the owners backs but only those who convert to DRI points will get the upgraded units until all the units are slowly upgraded.


I am basing this on some Williamsburg properties who have had MF's double and it seems like there are always units that haven't been upgraded to stick exchangers in.

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

Just a quick historical note. Several years ago, just before the credit market collapse, DRI actually had a signed agreement in place to acquire Bluegreen in a friendly takeover - closing date and everything. Between the time the deal was announced and the closing date the credit market crash occurred, and DRI's lenders withdrew their funding. Closing date of the deal was extended to allow DRI time to find new financing, but the credit markets were in complete disarray and DRI couldn't refinance. So the deal was cancelled. (DRI's contemplated acquisition of Raintree collapsed at the same time.)

So DRI isn't some johnny-come-lately to this affair. They've been involved with this for sometime. The Bluegreen Board's action is pretty obviously hostile to DRI - leaves me wondering if there aren't some personal hard feelings about the collapse of the previously takeover. If it was a friendly takeover before, why is DRI now considered a hostile entity.

[gandalf252002 Senior Member Find all posts View Profile Close gandalf252002]

I for one would be dissapointed both from an investment stand point and from an owner. From what I can tell DRI is not a publicly traded company and a takeover of BlueGreen to me would indicate they are scared. BG stock has risen two-fold in the last 6 months and by a lot of timeshare owners considered to be one of the better companies. Low MF's in a lot of cases, and access to quality resorts. If I wanted access to DRI's properties I would have become an owner and there is no benefit to me. Most of their resorts are West Coast.

[Carlos Senior Member Find all posts View Profile Close Carlos]

I was with Sunterra as well before DRI took over and did not no what to expect. Then maintenance fees went up significantly. That was upsetting. However, the steep increases stopped. The properties that were in need to be refurbished and improved. The website for reservations was improved and most importantly to me, more resorts were added into the system.

There are a lot of happy owners with DRI who you don't hear much from, and there are a lot of unhappy owners who you hear a great deal from. Overall, I find that the maintenace fees are reasonable when I compare them to other resort systems. I have a lot of points and can stay quite a bit of time and my maintenance fees are quite reasonable as I have better perspective than most.

[billymach4 Super Moderator Find all posts View Profile Close billymach4]

Basically a smear campaign on the part of DRI! They are an LLC. Not a public company at all.

[Spence Super Moderator Find all posts View Profile Close Spence]

. If it was a friendly takeover before, why is DRI now considered a hostile entity.

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