Riley Rips Regent Again Over Meeting Squabble
August 31, 2007 at 12:50 PM (PT)
After getting sued by REGENT COMMUNICATIONS, institutional shareholder RILEY INVESTMENT MANAGEMENT LLC has sent a letter to REGENT's management and board reiterating its demand for a special meeting to appoint additional directors to REGENT's board.
The letter tells REGENT, "We are disappointed that rather than complying with the demands of 20% of your stockholders, you have sued two of your largest stockholders to block your own stockholders from voting at a special meeting. Since the Company filed its lawsuit on AUGUST 15, 2007, REGENT stock has continued to decline more than 10% from $3.01/share to its historical low of $2.57/share as of close YESTERDAY.
"We suspect that, like us, your stockholders will regard the attempts to paint us in a negative fashion, instead of addressing our concerns on their merits, as showing a desire to control the corporate agenda rather than letting stockholders express their views as we are entitled to do. With every legal filing that you have made to stop a vote, we believe the Board is sending a message that the opinions of its stockholders do not matter and that it is willing to spend company funds to prevent a stockholder vote.
"Quite frankly, we are dumbfounded at this approach, especially given that your recent legal tactics have not appeared to meet with much success. Earlier this week, the U.S. District Court of DELAWARE denied your motion for a temporary restraining order to enjoin the special meeting. Last week, the DELAWARE Court of Chancery also denied your motion to stay our case and set a hearing date. We urge you to stop wasting the Company’s money on further litigation and hold a special meeting. If you convene a meeting to address our proposals, you will have a full opportunity to explain any objections you have to our concerns, and we will have a full opportunity to put the reasons for our concerns before the stockholders, who can then decide.
"In summary, we would like to reiterate that over 20% of your owners have demanded a stockholder vote to appoint additional directors. We urge the Board to reconsider its current confrontational and disruptive strategy and call a special meeting."