EnerCare Inc. (ECI.TO: Quote) said it sent a letter to all shareholders urging them to vote their BLUE proxies and reject Octavian's board-stacking scheme, so that EnerCare can continue a steady course of strategic acquisition, organic growth and regular monthly dividends for shareholders.
EnerCare said that the letter summarized its position in its battle to prevent Octavian from disrupting the business and forcing a quick sale. In this challenge, EnerCare has recently received the endorsement of two leading independent proxy advisory firms, Institutional Shareholder Services and Glass Lewis & Co., both of which have recommended that shareholders vote for management's position.
EnerCare said in late 2011, Octavian made its first attempt to stack its Board, demanding that it install four of their own hand-picked nominees on the Board. Now Octavian is seeking to get its way through a proxy battle, EnerCare said.
In the letter, EnerCare said its shareholders will be asked to consider Octavian's demands at the annual and special meeting of shareholders on April 30.
EnerCare noted that Octavian wants EnerCare's shareholders to help them stack the board by increasing the size of the Board, dismissing two experienced independent directors and electing four hand-picked Octavian nominees. It wants 40% of the board seats, even though it owns only 13% of EnerCare's shares.
by RTT Staff Writer
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