|
As the Sotheby's situation wrapped up, and Dan Loeband the company resolved their differences, we used it to illustrate how settlement agreements work.
To our chagrin, at the time we missed a fascinating example of one such agreement from a couple of months earlier. US Auto Parts Network (PRTS) and its largest investor, Timothy Maguire of Maguire Financial, also settled a possible proxy situation. Yet, they did so in a way not seen before, with a written agreement to work together to find a BoD nominee.
We can thank noted activist investor attorney Steve Wolosky for this novel agreement. It features some interesting terms that allow the company and shareholder to find a mutually-agreeable director. It also has a couple of more onerous terms. Even with these terms, in the right situation we think that other investors should consider such an agreement with their portfolio companies.
In a current blog post, we explain further.
|
