FrontFour Strikes Back At Fisher Management In Letter To Shareholders
April 26, 2011 at 2:43 PM (PT)
FRONTFOUR CAPITAL GROUP is striking back at FISHER COMMUNICATIONS management's letter to shareholders (NET NEWS 4/21) in the ongoing battle over the upcoming board election, sending its own letter to stockholders calling FISHER's statements "misleading and baseless assertions" and "part of a continuing campaign to distract from the real underlying issue at hand -- the continued poor operating performance and destructive acquisition strategy of the Company under the current Board."
Noting that FISHER's board did not bring up the points in its letter at the forum held by GABELLI AND CO. in NEW YORK on APRIL 21st, FRONTFOUR told shareholders that it "was compelled to run this election contest because after having one representative on the Board for two years, we were unable to get the Board to take the necessary steps to improve stockholder value. Let us look at one example. We believe the Company should have taken more proactive steps toward returning capital to stockholders rather than waste over $90 million on ill-conceived acquisitions."
Warning that the company appears to be looking to pursue an acquisition strategy, FRONTFOUR's letter alleges, "The CEO and Board have proven to be poor capital allocators, and we do not want corporate assets to be wasted any further." The letter charges that FISHER's management is "only showing you the numbers it wants you to see" and is moving down a "reactionary path." The letter concludes with a plea for shareholders to vote for the FRONTFOUR slate of director candidates in the upcoming election.