Angelica restates commitment to represent the interests of all shareholders
07 Feb '06
3 min read
The company has embarked on a strategy of selling peripheral businesses, downsizing its corporate overhead, and seeking to build a strategic healthcare services asset in a focused effort to maximize shareholder value. This strategy was publicly endorsed by Lichtenstein of Steel Partners just over one year ago."
O'Hara concluded, "Although we regret spending any time on issues that don't advance our business goals, we want to assure all shareholders that we will not lose focus on the new strategy we have implemented for the Company and our efforts to enhance shareholder value."
On December 16, Angelica established an independent Special Committee of the Board of Directors to review the letter it received form Steel Partners as part of the firm's filing of a Form 13D expressing its interest in becoming more actively involved in the operations of the company.
The Special Committee engaged in extensive discussions with Steel Partners and unanimously agreed to establish two additional seats on the Board of Directors for representatives of Steel Partners. This offer was rejected by Steel Partners.
Instead, Steel Partners has continued to demand the Company make various changes to its corporate governance policies that provide protections for all shareholders. It is noteworthy that the Institutional Shareholder Services (ISS) Corporate Governance Quotient(R) for Angelica, as of January 1, 2006, ranks the Company higher than 74.4 percent of S&P 600 companies and 86.7 percent of Commercial Services & Supplies companies.
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