Jones Lang LaSalle


Wilshire Enterprises Accused of Conflicts of Interest

An investment group that wants to buy Wilshire Enterprises (Amex: WOC) has launched accusations of double-dealing and conflicts of interest against Sherry Wilzig Izak, chairman of the Newark-based real estate investment and management firm.

A letter dated today from Mercury Real Estate Advisors, a Greenwich, Conn.-based real estate investment management firm, expresses "serious concerns over the strategic direction and value destroyed by management of Wilshire Enterprises." It goes on to offer $8.50 per share in cash for all of the outstanding shares of Wilshire.

On Jan. 27, Wilshire announced it had retained a broker-dealer to look at "alternatives to maximize shareholder value," including a merger or the sale of the company. However, Mercury casts doubt on that initiative, claiming that Wilzig Izak is a "part-time member of management who is continuing to receive exorbitant compensation from the company" and is therefore not really interested in selling Wilshire. In 2004, she received $538,000 in salary and bonus, according to Wilshire's most recent annual report.

Shares of the firm gained $0.27 to $8.47 in afternoon trading. - Martin C. Daks