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Mosaid Technologies
Challenge: A shareholder owning 9.7% of Mosaid’s
outstanding shares issued a letter to the board requesting the
company be sold to the highest bidder. Mosaid’s board
responded by assuring shareholders that the current board was
the best choice to create long term shareholder value. Mosaid’s
management engaged Kingsdale Shareholder Services Inc.
Solution: Kingsdale’s role was to solicit
support for the existing board and to assist with strategies
relating to the tabulation of proxies and the shareholder meeting
protocol. Kingsdale immediately began to contact the company’s
retail and institutional shareholders who, collectively, held
the remaining 90% of the shares outstanding. An important step
in the process was to enter into discussion with RiskMetrics
(ISS) to weigh all options available to Mosaid and the dissident
shareholder group.
Result: With Kingsdale’s leadership and
solicitation efforts, RiskMetrics voted in favour of the current
management and recommended its clients vote the same. Immediately
prior to the shareholder meeting, Mosaid management and the
dissident group negotiated a compromise whereby the existing
board would be re-elected and four new members, chosen by the
dissidents, would make up the new ten member board. |
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