Clinton Group urges Steven Madden to consider recapitalization

By Lisa Kerner

Charlotte, N.C., Nov. 2 - Steven Madden, Ltd. investor the Clinton Group Inc. said it is pleased that the board of directors will evaluate strategic alternatives but still believes "a recapitalization would improve the efficiency of the company's capital structure and create immediate accretion for shareholders."

Clinton's Joseph A. De Perio made the comments in a letter to chief executive officer Jamieson A. Karson. The letter was included in a schedule 13D filing with the Securities and Exchange Commission.

The investor group increased its ownership in Steven Madden to 6.1% "in the expectation that the board will in fact take steps to realize the substantial inherent value of the company."

Clinton also supports a sale of the company "if the acquisition price reflected Steve Madden's promising, long-term business prospects."

Steven Madden announced on Oct. 19 that it had formed a strategic review committee comprised of independent directors.

The Long Island City, N.Y., company designs and markets footwear and accessories.

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