Daniel Loeb, the founder of hedge fund Third Point, is pushing for a transparent and competitive sales process at SoHo House, urging the company’s board to consider alternative bidders beyond the existing take-private offer, according to a report by Reuters.

In a letter sent on Wednesday, Loeb criticised the $9-per-share offer made late last year, calling it a "sweetheart deal," arguing that other potential buyers with hospitality industry expertise could offer better terms.

Third Point holds nearly a 10% stake in SoHo House, the exclusive private club operator that has struggled since going public in 2021. While Loeb supports a return to private ownership, he raised concerns that the current proposal may undervalue the company.

Following news of Loeb’s involvement, SoHo House shares surged 7.5% in pre-market trading, after closing at $7.37 per share on Tuesday. The company is currently valued at approximately $1.4bn.

Loeb’s letter specifically called out Ron Burkle, SoHo House’s Chairman and head of investment firm Yucaipa, accusing him of conflicts of interest.

"Burkle’s obvious conflicts of interest and undue influence on the board via his super-voting share class make it imperative that the board open the sale process to outside bidders," Loeb wrote.

SoHo House has yet to publicly respond to the letter.