Sandell Critical of Value Enhancement Initiatives at InfoSpace, May Nominate Alternate Directors

    NEW YORK, March 13 /PRNewswire/ -- (Nasdaq:   INSP) -- Sandell Asset
 Management Corp. ("Sandell") issued a letter to the Board of Directors of
 InfoSpace, Inc. (the "Company") expressing its concern over the Company's
 lack of definitive plans to return capital to shareholders and its apparent
 complacency on cost controls. Sandell, who holds approximately 8.8% of the
 Company's common stock, suggested that the Company should (i) reduce
 expenses by at least $15m through the end of 2007, (ii) buy back $200m of
 its common stock through a Dutch auction and (iii) issue a special dividend
 of $100m. Sandell believes that if these initiatives are followed,
 InfoSpace could be worth between $35 and $41 per share. Further, Sandell
 recommended that Infospace retain an investment bank to evaluate strategic
 alternatives if the valuation gap is not addressed quickly. Sandell
 indicated it is currently considering the option of nominating an alternate
 slate of directors at the Company's upcoming annual meeting.
     Tom Sandell, the CEO and Senior Portfolio Manager of Sandell stated,
 "We believe that InfoSpace shares are materially undervalued and the board
 and management should take immediate steps to improve that value. If the
 company and the board are unable or unwilling to take these steps, we think
 the company should be sold. As the company's largest shareholder, our
 interests are directly aligned with the rest of the shareholder base in
 seeing value maximized and we may seek representation on the board to
 protect those interests."
 
 

SOURCE Sandell Asset Management Corp.

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