Major Shareholder of Tecumseh Products Announces Intention to Vote FOR the Proposal to Combine the Company's Class A and Clas...
March 31 2014 - 1:39PM
3.8% Class B Holder believes proposal's passage would increase
the chance of Tecumseh being "put in play"
Citing prior board's failure to execute on formerly expected
asset sales, seeks to have company sold at any price of $9 per
share or higher
Timothy Stabosz, owner of 3.8% of Tecumseh Products Company's ("the
Company") Class B common stock (Nasdaq:TECUB) and 77,000 shares of
Class A common stock (Nasdaq:TECUA), today announced his intention
to vote FOR the Company's Recapitalization Proposal, or proposal to
combine the Class B voting, and Class A nonvoting, into a single
class of stock. The proposal is scheduled to be voted on at the
Company's annual meeting, to be held on April 30, 2014. Stabosz
announced his intention today, in a Schedule 13D filing with the
Securities and Exchange Commission. The entire SEC filing can be
viewed at the following web link:
http://www.sec.gov/Archives/edgar/data/96831/000116289314000001/tecub13d.txt
In summarizing the filing, Stabosz stated, "I am announcing my
voting intention, because I believe passage of the Recapitalization
Proposal will help increase overall trading liquidity, decrease the
trading spread in the market, increase investor interest, and, just
as importantly, increase the possibility of the Company attracting
a potential buyer."
Stabosz continued, "The Company recently announced the
appointment of a Chief Restructuring Officer, and is well on its
way to a comprehensive evaluation of its entire business portfolio
and cost structure. I am very disappointed at the failure
of the board to successfully effect any of the asset
sales that had been expected. Dithering resulted in the ultimate
loss of a limited time window to effect such sales. As a result,
the Company is in the more difficult position of having to pursue a
global restructuring, without the benefit of the additional
liquidity that such asset sales would have provided. Owing to the
additional risk entailed," Stabosz pointed out, "I believe the
Company should reasonably entertain any offers to purchase the
entire company, at a price of $9 per share or higher, and I would
support any such proposal." (Stabosz stated in his filing that he
is unaware of any such offers, although he said there were
expressions of interest, approximately 15 months ago.)
Stabosz did not announce his voting intentions on any of the
other matters to be decided at the annual meeting.
Timothy Stabosz is a private investor specializing in
contrarian, "deep value," low-priced microcap company stock
investing.
CONTACT: Tim Stabosz at 219-324-5087, or tstabosz@csinet.net
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