Former InfoGroup CEO calls for company sale
Vin Gupta, the founder and former CEO of InfoGroup, said this week the database and marketing services company should consider a sale of the company.
In a statement, Gupta said the company should "explore its strategic alternatives" and that he is considering purchasing the company's outstanding shares and taking it private. Gupta owns about 40% of the shares of InfoGroup.
Gupta said he would “also be willing to sell his family's shares in connection with a sale of the entire company,” under appropriate circumstances.
"I believe that the InfoGroup stockholders would benefit from a cash or liquid stock proposal for their shares," he said.
"We understand Mr. Gupta's concerns, and we share his desire to enhance shareholder value for all the company's shareholders," said Bernard Reznicek, chairman of InfoGroup's board of directors, in response to Gupta's statement.
Reznicek also said he does not expect the company to have any further comment on the prospects for a sale or other action to increase shareholder value until the board of directors has had time to consider the views of the company's independent financial advisor.
Gupta was forced out earlier this year as CEO and as chairman of the board of directors following shareholder lawsuits charging him with excessive expense reimbursements and corporate spending.