Meadow Valley investor CD Capital says company should sell

By Lisa Kerner

Charlotte, N.C., Oct. 24 - Meadow Valley Corp. investor CD Capital Management LLC, in an Tuesday letter to the company's independent directors, expressed disappointment with how Meadow Valley is being managed.

The letter from CD Capital managing member John D. Ziegelman was included in a schedule 13D filing with the Securities and Exchange Commission.

CD Capital believes Meadow Valley should immediately be put up for sale in order to maximize long-term shareholder value.

Ziegelman cited the independent directors' "abject failure to safeguard shareholder value" and demanded that the board engage an investment bank "to assess all strategic alternatives, including selling the company."

CD Capital said based on its most recent due diligence efforts, along with conversations with bankers and analysts, there are several purchasers potentially interested in acquiring Meadow Valley.

"Based upon these discussions and our views of value, we believe that a transaction could be consummated at a value range of $17 to $19 per share," Ziegelman's letter stated.

CD Capital and the reporting persons own 345,700 shares, or 6.7%, of Phoenix construction materials company.

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