Looks like there is another proxy fight in the making.
Bow Street, an investment firm that owns 4.5 percent of the outstanding shares of common stock of Mack-Cali Realty Corp., previously informed Mack-Cali of its decision to nominate eight candidates to stand for election to the board at its annual meeting – four of which were nominated and elected at last year’s annual meeting. However, Mack-Cali on Monday said it will not re-nominate those four directors.
Earlier in March, when Bow Street called on Mack-Cali shareholders for the election of four additional directors to the board, it also sought to remove Chief Executive Officer Michael DeMarco.
In a press release Mack Cali said: “Bow Street has made clear, its objectives are to gain control of the Mack-Cali Board, dismiss the CEO and force a ‘fire sale’ of the company or its premium assets.”
But Bow Street’s Managing Partners Akiva Katz and Howard Shainker on Tuesday said, “In a deliberate and desperate attempt to mislead shareholders, the board falsely insists that we are seeking a fire sale of the company. Nothing could be further from the truth.
“Our capital is long-dated, and our sole objective is to maximize value at Mack-Cali,” Katz and Shainker continued. “Like all shareholders, we expect accountability, performance, and directors who are true fiduciaries. Shareholders should be disgusted. The board’s shameless attempt to stifle their voices is further evidence of the change required at the company.”
Mack Cali feels that Bow Street’s efforts to seize control of the company while its employees, tenants and business partners are managing the COVID-19 pandemic “further underscore the selfishness and recklessness of Bow Street’s proxy contest.”
The Mack-Cali board says it is open to all alternatives for maximizing stockholder value, including a potential strategic transaction and expects to conduct a strategic process as soon as market conditions improve.