SAN FRANCISCO--(BUSINESS WIRE)--Voce Capital Management LLC (“Voce”) today announces that the poison pill implemented by the Board of Directors of Obagi Medical Products, Inc. (“Obagi”) (Nasdaq:OMPI) has been voted down by shareholders at the annual meeting today. In a stinging rejection, less than one-third (1/3) of Obagi’s outstanding shares voted to ratify the plan. The lopsided outcome is particularly telling in light of the fact that the influential Institutional Shareholder Services (ISS) recommended in favor of the pill. Voce representatives made a presentation at the meeting.
Voce has publicly urged shareholders to reject the Obagi poison pill for several months, arguing that it represented a desperate attempt by an entrenched Board to drive away significant acquisition interest.
J. Daniel Plants, Voce’s Managing Partner, stated that “the vote on this poison pill was nothing short of a referendum on the Board’s stand-alone strategy and its persistent disrespect for Obagi’s shareholders. The Board has been sent a clear message: Obagi shareholders will decide for themselves whether they prefer the company to remain independent or be sold to a superior operator. We have now cleared a path so that parties interested in acquiring Obagi may bring their case directly to the shareholders.”
Mr. Plants continued: “Although their time is running short, it’s still not too late for the Obagi Board to do the right thing. The right thing begins with the CEO and the Chairman immediately refraining from telling would-be acquirors that the company will not discuss or consider acquisition proposals. It also involves hiring a reputable investment bank to explore all strategic alternatives, including the sale of the company. And it requires cleansing the Board of its many conflicts of interest and adding appropriate representation to guard the rights of shareholders.”
Mr. Plants concluded: “The campaign for shareholder value at Obagi marches on.”
About Voce Capital Management
Voce Capital Management LLC is an employee-owned investment manager and the adviser to Voce Catalyst Partners LP, a private investment partnership.