Sigma Designs, Inc. (SIGM: Quote) said Thursday that it has mailed a letter to its shareholders urging them to vote for Sigma's approved slate of directors and discard the nominees of dissident hedge fund Potomac Investment Partners III, L.P.
According to Sigma, Potomac Investment, which is a 7.9 percent shareholder of the company, is seeking control of the Board with nomination of three out of four directors.
In the letter, Sigma said that it is continuing to execute its strategic plans which will be disrupted if Potomac's nominees take control of the Board.
Sigma says that Potomac's nominees are not qualified to control the company, as one of the nominees has never served as a board member, while the other two have served as member of only three companies.
According to Sigma, this is not the time to turn over control of your Company to a hedge fund operator and his hand-picked nominees who do not have the knowledge and experience to oversee the successful implementation of this program, who refuse to tell you their plans if they do gain control of your Board and Company and who even refuse to acknowledge the self-evident fact that they are seeking control of your Board and Company.
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by RTT Staff Writer
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