DANVILLE, Calif.--(BUSINESS WIRE)--Angeion Corporation (NASDAQ:ANGN) shareholder, BlueLine Partners, today announced significant progress in rallying shareholders around BlueLine’s efforts to reform Angeion’s board of directors to include a new majority of directors selected directly by the company’s shareholders.
On August 10, 2010, BlueLine Partners filed a Schedule 13D with the Securities and Exchange Commission. In its filing BlueLine asked other shareholders to join with it in executing a demand for a special shareholder meeting for the purpose of removing the current board of directors and replacing it with a new board of directors that will be more responsive to the interests of Angeion’s shareholders.
“Within 24 hours of our filing, we had received support from more than 20% of Angeion’s shareholders,” said Tim Bacci, a managing director at BlueLine. “Clearly, Angeion’s owners are ready for a change and want new directors that will do a better job in delivering value to the company’s shareholders.”
Sufficient shareholder support has already been received to cause a special meeting of shareholders, but BlueLine believes it should be possible to collect signatures supporting its action from more than 50% of Angeion’s shareholders. “If we make it perfectly clear that the company’s shareholders support BlueLine’s effort, the board should forgo the need for a special meeting – we can avoid all that delay and expense,” said Bacci. “Please review the SEC filing and if you agree, execute the form and send it in as soon as possible.”
A PDF form of the shareholder action can be obtained by visiting BlueLine’s website at www.bluelinepartners.com/demand.
BlueLine’s plan is to remove the current board of directors and replace it with a new board of directors nominated directly by Angeion’s shareholders. BlueLine has asked Angieon’s shareholders to nominate individuals to the board. From these nominees, BlueLine proposes that the company’s largest shareholders each select one of five new board members.
BlueLine recommends that the new board of directors serve without compensation until Angeion returns to profitability, and thereafter be paid predominantly via equity-based compensation in order to align director pay with the economic experience of the company’s shareholders. BlueLine further recommends an initial $5 million stock repurchase program. “Angeion’s business is not complex,” said Bacci, “there is no reason it cannot be operated at a profit and there is no reason for the board to allow the stock to trade just above the company’s cash value.” Using the company’s excess cash to support the stock price will not only immediately benefit shareholders, a higher stock price will greatly strengthen the company’s position with respect to potential future strategic combinations.