Activist shareholders at work: Sandell Asset Management, a investment management firm that owns about 8.8 percent of Infospace shares, has notified the company of its intention to nominate three independent candidates for election to the board of directors at the 2007 annual meeting of stockholders.
This notification follows Sandell’s letter to the company earlier this week expressing concern over the lack of capital return to shareholders from InfoSpace’s large cash balance and complacency over cost controls, the firm said in a statement. Specifically, Sandell asked the company to immediately return $300 million of cash in the form of a $200 million Dutch tender offer at a premium to the current share price and a $100 million special dividend. Sandell also asked the company to cut an additional $15 million of costs to improve the profitability of its remaining operations after the restructuring of its mobile division.
Also, the firm wants Infospace to get a banker to look at sales options…but that has been happening for a long time, and nothing came of it.
More details here.