Angelica announces status of independent special committee deliberations
01 Feb '06
3 min read
Leading provider of healthcare linen management services Angelica Corporation has announced that the independent Special Committee established by its Board of Directors to address issues raised recently by the company's largest shareholder, Steel Partners II, L.P. ('Steel Partners'), has thus far been unsuccessful in its efforts to accommodate the interests of Steel Partners.
In response to Steel Partners' request, the Special Committee - which is comprised solely of independent, outside directors - engaged in extensive dialogue with the firm and offered to allocate two seats on the company's Board of Directors to Steel, as requested by Steel in its December 14 letter to the company.
This initiative, which would increase the size of the company's board to ten seats, would allow Angelica to benefit from the expertise of Steel's representatives in the areas cited by Steel in its letter. Regrettably, thus far Steel has not deemed this proposal to be satisfactory.
Ron Kruszewski, Director and Chairman of the independent Special Committee, stated, "The Angelica Board of Directors is singularly focused on delivering long term value to all of its shareholders and welcomes the input of its shareholders.
"The Board also has an obligation to fully represent the interests of its entire shareholder base and believes that by agreeing to add two representatives of Steel Partners to its Board that it has been highly responsive to the interests of itslargest shareholder, while also representing the interests of the other shareholders. We will continue to seek mutually agreeable means to respond to the interests of Steel Partners," he added.
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