Activist investor Ader proposes new directors for Bwin board

LONDON (Reuters) - American activist investor Jason Ader has stepped up pressure on online gambling company Bwin by proposing for election four new directors to tackle what he describes as a continuing decline in the business. Ader, whose asset management firm SpringOwl is Bwin's fourth-largest shareholder, said that the addition of the new executive directors would bring significant expertise in online gaming, technology and U.S. banking systems. Bwin said it would consider the proposal and declined to comment further. The company's annual general meeting is scheduled for May 22. Activist investors push for change at companies they believe are undervalued and can provide better shareholder returns through a change in strategy or management. Ader, a former Wall Street gaming analyst, went to battle with U.S. slot-machine maker International Game Technology last year, winning a board seat for his firm. Last month Bwin reported a near-35 percent fall in full-year pre-tax profit to 108 million euros (88.71 million pounds) because of falling revenue, increased gaming taxes in Germany and start-up costs in New Jersey. Its share price has fallen by about 8 percent over the past year. "SpringOwl has made numerous attempts to work with the incumbent board of Bwin to facilitate a reconstitution of the board to ensure accountability to shareholders," Ader said in a statement, adding that his firm believes that shareholders have become disillusioned by "ongoing declines" in Bwin's results. Ader, whose stake represents 5.25 percent of Bwin's shares, proposed that Michael Fertik, Francis Grady, Kalendu Patel and Steven Rittvo be added Bwin's existing nine-strong board. (Reporting by Li-mei Hoang; Editing by David Goodman)