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Third Point prepared to acquire Flow International
By Lisa Kerner
Charlotte, N.C., April 23 - Flow International Corp. investor Third Point LLC, led by Daniel S. Loeb, said it prepared to make an offer to buy the company if permitted to work with chief executive officer Stephen Light.
"We are asking the board to waive the restrictive provisions of Mr. Light's employment agreement and to authorize him to engage in discussions with us, if he so chooses, so we can develop a business plan and valuation upon which our bid can be based," Loeb wrote in a letter to Flow's board.
"To be productive, we would anticipate that those discussions would require the sharing of confidential information, and would be prepared to enter into an appropriate agreement to protect that information from misuse."
The letter was included as part of a schedule 13D filing with the Securities and Exchange Commission.
Third Point, a New York investment adviser, has been pushing for the company to retain an investment bank since February. In addition, Loeb has also been critical of the board and the qualifications of its members. The investor is Flow's largest shareholder with a 13.6% controlling stake in the company.
On April 9, in response to Loeb's criticism, the board chairman Kathy L. Munro said the board was "committed to listening to constructive suggestions and ideas from all of our shareholders" according to a company news release.
Based in Kent, Wash., Flow develops and manufactures high-pressure water jet technology equipment used for cutting, cleaning and food-safety applications.
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