The activist hedge fund Ramius has garnered enough support from shareholders of Orthofix International to force a special meeting to replace four members of the orthopedic equipment maker’s board, according to a letter sent to the company late Wednesday night.
Ramius said it had received support from shareholders representing 55 percent of the outstanding shares of Orthofix, according to the letter, a copy of which was obtained by DealBook. Because Orthofix is incorporated in the Dutch Antilles, only 10 percent of shareholders are needed to force the company to call a special meeting to elect new board members.
“Ramius believes this strong show of support, which is well in excess of the required 10% threshold, clearly demonstrates that shareholders demand the opportunity to exercise their right to call a special general meeting for the purpose of voting on the composition of the board,” the New York hedge fund said in the letter.
Wow this is pretty big news. I am surprised that the Ramius plan is going as far as it has and it looks like they could be successful in removing 4 board members. What does this mean for Alan Milanozzo as President and CEO since he was one of the 4 they are trying to replace?
Did you read the CFO, Gero’s response? It was scathing! And effective in my mind.
I wouldn’t count Milinazzo out just yet. He is a class act and has done a lot of good work there. If anything, this is a slam against the Lyon brothers.
When Orthofix bought Blackstone, they bought an Albatross! I find it difficult to believe that during the due diligence process Milanazzo et al, did not know of the Lyons Brothers special program for growing revenue. Once the DOJ came sniffing around, the exodus started with Surgeons and Distributors heading for cover. When you lose $8.8MM is one quarter red flags start to go off. Orthofix was a profitable company that got GREEDY. Even Class Acts drop the ball. Off with their Heads