Potomac Capital Partners III L.P., a prominent shareholder of chip company Sigma Designs Inc. (SIGM: Quote), Wednesday urged fellow stockholders to back the election of its three Board nominees at the 2012 meeting.
Potomac Capital, which is part of a group that owns an eight percent stake in Sigma Designs, said a Board rejig is needed to end the lackluster performance of the company and to enhance shareholder value.
The existing Board, Potomac Capital said, is largely responsible for the slide of Sigma Design's financial, operating and stock performance. It also censured Board members for their investment in firms that have questionable value to the company, and for their dubious past involvement in an options backdating scandal.
Potomac Capital has recently locked horns with Sigma Designs Board, with plans to install its director nominees. The Board tried to preempt the move by announcing a poison pill, which it recently terminated. The company also announced the separation of the roles of Chairman and CEO, moves which Potomac Capital feels aren't enough to address problems facing the company.
Potomac Capital said its three Board nominees will be Mark Bonney, Mark Fitzgerald, and Eric Singer. Bonney has over three decades managerial experience in middle market, high tech companies, while Fitzgerald is credited with vast experience as an analyst in the semiconductor sector. Singer has investor experience in the sector.
SIGM is trading at $6.36, down $0.15 or 2.30% on the Nasdaq.
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by RTT Staff Writer
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