Successful Proxy Campaign
An Israeli-based hedge fund launched a proxy battle to replace the board of an Israeli-based technology client. The fund cited insufficient growth of the business and stock underperformance, which it attributed to mismanagement and lack of a clear strategy at the board level. However, the client had in fact successfully completed turnaround activities and had activated a compelling strategy to drive sustained shareholder value.
IMS mobilized to quarterback a strategic and aggressive campaign which included:
Developing and driving a communications strategy to ensure the incumbent board’s progress and goals were clearly presented and understood by existing shareholders. Tactics included:
Establishing a Company platform statement emphasizing the merits of the current board and its strategy
Issuing press releases related to the proxy battle, as well as operational and financial releases to highlight the ongoing growth initiatives
Maintaining consistent communication with specific linchpin institutional holders
In conjunction with management and the proxy firm, proactively communicating with all smaller institutional and retail holders to secure their vote
Creating a presentation for Institutional Shareholder Services (ISS) that clearly illustrated why the dissident board slate was not in the best interest of shareholders; As a result, the client company won ISS endorsement
Shareholders overwhelmingly rejected the dissident slate with a vote of 72% in favor of the existing board. Client was able to re-engage 100 percent of its focus on executing its strategy to drive sustained shareholder value.