Adaptec continues to oppose Steel's attempted 'hijacking' of board

By Lisa Kerner

Charlotte, N.C., Oct. 6 - Adaptec, Inc. told shareholders that Steel Partners II, LP's consent solicitation, if successful, will allow the minority investor to seize effective control of the company.

The company said that for Steel Partners, Adaptec is a ready source of more than $350 million in cash that the investor could use to buy into the banking industry. In a letter to shareholders, Adaptec cited a recent similar scenario involving Steel Partners.

According to Adaptec, "a 'blank-check' shell company controlled by Steel Partners" had planned to acquire troubled bank Frontier Financial Corp. However, the deal was terminated after necessary regulatory approvals could not be obtained.

The investor is attempting to remove Adaptec chief executive officer Subramanian Sundaresh and director Robert J. Loarie from the board. It is also proposing that the number of directors be fixed at seven and that any company bylaws enacted since May 6 be repealed.

Adaptec, a Milpitas, Calif., data storage company, once again urged shareholders to "prevent Steel Partners from hijacking" the company by not responding to Steel Partners' solicitation or by revoking their consents.

Last week, in its letter to Adaptec shareholders, Steel Partners said the company's directors are trying to distract shareholders from their "record of failure and massive destruction of stockholder value" with "misleading propaganda, half-truths and disinformation."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.