WC Capital wants iPass to sell

By Lisa Kerner

Charlotte, N.C., May 28 - WC Capital Management, LLC urged the iPass Inc. board of directors to begin a process to sell the company.

The investor does not believe the company's current market valuation of approximately $130 million "accurately reflects the company's potential value to a larger enterprise," according to a WC Capital statement.

In a May 27 letter to iPass chairman Kenneth Denman, WC Capital's Aaron H. Braun expressed doubt in the abilities of iPass' board and management to achieve additional gains.

Braun believes the current directors "lack the motivation of significant stock ownership to be correctly aligned with non-management shareholders."

In addition, WC Capital, a 4% shareholder, supports the election of Shamrock Activist Value Fund, LP-affiliated nominees and withheld its votes for the non-Shamrock directors.

"While management has made strides in transitioning the company's business model, these efforts have recently lost momentum and management's goals for 2008 and beyond may be unattainable in the current environment," Braun's letter said.

WC Capital also cited the declining price of iPass shares by about 75% from a high of $8.25 in April 2006.

It was previously reported that Shamrock, owning 14% of iPass, nominated:

• Michael McConnell, managing director of Shamrock Capital Advisors, Inc. and vice president of Shamrock Partners Activist Value Fund, LLC;

• Eugene I. Krieger, vice chairman and chief operating officer of Shamrock Holdings and vice president of Shamrock Partners; and

• Mark E. Schaffer, managing director of Shamrock Capital's Genesis Real Estate Funds.

iPass, located in Redwood Shores, Calif., provides software-enabled enterprise connectivity for remote and mobile workers.

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