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Frustrated Chap-Cap invests more in Packeteer, considers proxy solicitation to reconstitute board
By Lisa Kerner
Charlotte, N.C., Aug. 13 - Investors led by Chap-Cap Activist Partners Master Fund, Ltd. bought 3,490,232 shares of Packeteer, Inc. between July 2 and Aug. 9 priced from $1.25 to $7.76 per share.
Chap-Cap reported the purchases in a schedule 13D filing with the Securities and Exchange Commission.
Robert L. Chapman Jr., a principal in Chap-Cap, attempted to contact each member of Packeteer's board on Aug. 13 to find out why chief executive officer David G. Cote refuses to discuss the company's strategic direction and operating under-performance with Chap-Cap.
Chapman Capital, based on input from other shareholders, determined that "the solicitation of proxies to reconstitute the board appears to be the most efficacious method to rectifying" what it calls Packeteer's "gross corporate governance deficiencies," the filing stated.
The reporting persons beneficially own a total of 3,495,872 shares, or 9.7%, of the company.
Previously, Chapman demanded that Packeteer hire an investment bank. In July, Chapman reported a 9.9% stake in the company. The investor expressed frustration in Cote's inability to be reached by phone or through a message.
Based in Cupertino, Calif., Packeteer provides wide area network application delivery systems to enterprise customers and service providers.
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