Cenveo CEO Rallies Shareholders Against Dissident Bid

Share this content:
Print communications provider Cenveo's new CEO issued a letter to shareholders last week urging them to oppose a bid by dissident shareholders led by investor Robert Burton to take over leadership of the company.

Cenveo shareholders vote Sept. 14 on whether to stick with the current executive team or appoint Burton and his supporters. In the letter, CEO James R. Malone, who was hired in June, warned that Burton's group was trying to take over Cenveo without giving any value to shareholders.

"Remember, Burton is not offering to pay a control premium," Malone wrote. "He is not offering to buy your shares. Instead, he is seeking to gain control by installing himself as chief executive officer, installing his associates as directors and his children into important management positions."

Malone said he has a plan in place to cut $55 million in annual costs from the company by the end of the year and to streamline management, consolidate facilities and discontinue unnecessary programs. Burton has yet to reveal his plan to investors, Malone said.

Burton, president of Burton Capital Management, along with Goodwood Inc. called for the shareholder vote in June. Burton and Goodwood have criticized Cenveo executives for failing to maximize shareholder value and improve the company's performance.

In a recent statement to Cenveo shareholders, Burton Capital Management said Cenveo's management had "badly failed" investors. From Jan. 1, 2000, to April 7, 2005, investments in Cenveo lost 53 percent of their value, Burton said.

"BCM and Goodwood believe this is completely unacceptable," Burton said in the statement.

Loading links....

Next Article in Postal

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here