Richard Pechter, a member of the Financial Industry Regulatory Authority's board of governors, has offered to buy the money management unit of investment research firm Value Line.
Mr. Pechter said he would top a deal approved by Value Line's board in July that will convert the asset management unit into a trust that shares residual profits with five unnamed directors. He hasn't received a response from the firm, he said Tuesday in a telephone interview.
“I'm more than happy to pay exactly what the bid was, plus $250,000,” Mr. Pechter said. “If the deal they've proposed is a good deal for Value Line shareholders, my deal should be better.”
Jean Buttner, Value Line's majority owner, was barred by regulators in November from any management role in the investment advisory unit after settling a civil suit with the SEC that alleged Value Line charged more than $24 million in improper brokerage commissions. Ms. Buttner, who didn't admit or deny the claims, was fined $1 million while the company paid $43 million in reimbursements and penalties.
A telephone message for Howard Brecher, Value Line's acting chairman and CEO, seeking comment on Mr. Pechter's bid wasn't returned.