Wilshire Enterprises Accused of Conflicts of Interest

Mercury Real Estate Advisors of Connecticut expresses “serious concerns over the strategic direction and value destroyed by management of Wilshire Enterprises.”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.