Arbinet-thexchange investor calls strategic review process "costly" with no resulting shareholder benefit

By Lisa Kerner

Charlotte, N.C., June 19 - Arbinet-thexchange, Inc. investor Karen Singer said she is disappointed in the board's review of strategic alternatives, calling it a "lengthy and costly process which showed no beneficial results to shareholders."

However, Singer, a 9.05% stakeholder, is encouraged by the board's steps "toward giving the company a new direction that will help renew its growth and profitability," according to a schedule 13D filing with the Securities and Exchange Committee.

"I am hopeful that your willingness to work with my advisors in reviewing new director candidates will result in avoiding another lengthy and costly proxy contest," Singer wrote in a letter to the board as part of the SEC filing.

On June 12, Arbinet-thexchange said its board of directors completed its strategic review process and decided to maximize shareholder value in the near term by returning cash to shareholders through a $15 million stock repurchase plan.

The board appointed Robert C. Atkinson, its lead outside director, as chairman of the board and Roger H. Moore as interim chief executive officer following the resignation of J. Curt Hockemeier as president, chief executive officer and a director of the New Brunswick, N.J., electronic market operator company.

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