3.8% Class B Holder believes proposal's passage would increase the chance of Tecumseh being "put in play"
Citing prior board's failure to execute on formerly expected asset sales, seeks to have company sold at any price of $9 per share or higher
LAPORTE, Ind., March 31, 2014 (GLOBE NEWSWIRE) -- Timothy Stabosz, owner of 3.8% of Tecumseh Products Company's ("the Company") Class B common stock (Nasdaq:TECUB) and 77,000 shares of Class A common stock (Nasdaq:TECUA), today announced his intention to vote FOR the Company's Recapitalization Proposal, or proposal to combine the Class B voting, and Class A nonvoting, into a single class of stock. The proposal is scheduled to be voted on at the Company's annual meeting, to be held on April 30, 2014. Stabosz announced his intention today, in a Schedule 13D filing with the Securities and Exchange Commission. The entire SEC filing can be viewed at the following web link:
In summarizing the filing, Stabosz stated, "I am announcing my voting intention, because I believe passage of the Recapitalization Proposal will help increase overall trading liquidity, decrease the trading spread in the market, increase investor interest, and, just as importantly, increase the possibility of the Company attracting a potential buyer."
Stabosz continued, "The Company recently announced the appointment of a Chief Restructuring Officer, and is well on its way to a comprehensive evaluation of its entire business portfolio and cost structure. I am very disappointed at the failure of the board to successfully effect any of the asset sales that had been expected. Dithering resulted in the ultimate loss of a limited time window to effect such sales. As a result, the Company is in the more difficult position of having to pursue a global restructuring, without the benefit of the additional liquidity that such asset sales would have provided. Owing to the additional risk entailed," Stabosz pointed out, "I believe the Company should reasonably entertain any offers to purchase the entire company, at a price of $9 per share or higher, and I would support any such proposal." (Stabosz stated in his filing that he is unaware of any such offers, although he said there were expressions of interest, approximately 15 months ago.)
Stabosz did not announce his voting intentions on any of the other matters to be decided at the annual meeting.
Timothy Stabosz is a private investor specializing in contrarian, "deep value," low-priced microcap company stock investing.
Tim Stabosz at 219-324-5087, or firstname.lastname@example.org