Riley Investment asks Regent Communications to stop 'disruptive strategy,' hold special meeting

By Lisa Kerner

Charlotte, N.C., Aug. 31 - Regent Communications Inc. investor Riley Investment Management LLC said with 20% of Regent shareholders demanding a vote to appoint additional directors, it's time for the company's board to reconsider its "confrontational and disruptive strategy" by calling a special meeting.

Riley made its request in an Aug. 31 letter to Regent's board of directors and included in a news release.

The investor said it was "disappointed" that Regent chose to sue two of its largest stockholders, including Riley, to block a vote at a special meeting. Riley also noted the company's stock slide of more than 10% to its historical low of $2.57 per share on Thursday.

The U.S. District Court of Delaware recently denied Regent's motion for a temporary restraining order to enjoin the special meeting. The Delaware Court of Chancery also denied a motion to stay the case and set a hearing date.

It was previously reported that Regent filed a lawsuit against Riley alleging violations of the Securities Exchange Act of 1934. Riley had requested that Regent hold its annual meeting on Sept. 3 to amend the bylaws, make a nine-member board and elect John Ahn, Bob D'Agostino, Jared Davis and Joseph Patrick Hannan to Regent's board.

The investor has in the past suggested the Cincinnati-based radio broadcasting company sell as a means of increasing shareholder value.

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