03:31 PM EST, 01/29/2025 (MT Newswires) -- Soho House ( SHCO ) board has failed to ensure a fair sales process of the company and instead engaged in a deal with Chairman Ron Burkle that casts doubts, hedge fund Third Point said in a letter Wednesday.

The fund's chief executive Daniel Loeb said the firm -- that owns nearly 10% of Soho's class A shares -- supported the company's decision to go private, but asked that it open the sale process to outside bidders.

"We believe that numerous qualified parties with significant experience investing in the hospitality industry would be interested, and willing to pay a superior price to Mr. Burkle's Sweetheart Deal," Loeb wrote.

Soho House ( SHCO ) in December said it received a $9 per share acquisition offer from a consortium that requires certain major shareholders, including Burkle and his investment firm Yucaipa, to roll over their equity interests.

The bid followed a review by Yucaipa, which found the company was undervalued in the market, Soho House ( SHCO ) said at the time.

Soho House ( SHCO ) shares jumped 14% in Wednesday trading. The company did not immediately respond to a request for comment from MT Newswires.

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