Sandell Notifies InfoSpace of Intention to Nominate Alternative Slate of Directors at 2007 Annual Meeting
NEW YORK, March 15 /PRNewswire/ -- (Nasdaq: INSP) -- Sandell Asset Management Corp. ("Sandell") announced that it has notified InfoSpace, Inc. (the "Company") of its intention to nominate three highly qualified independent candidates for election to the board of directors at the 2007 annual meeting of stockholders. This notification follows Sandell's letter to the company earlier this week expressing concern over the lack of capital return to shareholders from InfoSpace's large cash balance and complacency over cost controls. Specifically, Sandell asked the Company to immediately return $300 million of cash in the form of a $200 million Dutch tender offer at a premium to the current share price and a $100 million special dividend. Sandell also asked the Company to cut an additional $15 million of costs to improve the profitability of its remaining operations after the restructuring of its mobile division. Further, Sandell has suggested that the Company engage a financial advisor to evaluate the potential sale of the Company in whole or in part. Sandell and others currently intend to conduct a proxy solicitation seeking to elect this minority slate to the board. "We made the decision to nominate an alternative slate of directors because we do not feel the necessary steps are being taken by the current board and management to maximize value at InfoSpace. We feel that shareholder representation on the board is warranted to ensure that all alternatives are considered and a course of action is taken to close the gap between the current share price and its inherent value," said Thomas E. Sandell, founder, principal and Chief Executive Officer of Sandell Asset Management Corp. "We hope to work constructively with InfoSpace's management and board to improve the value for all shareholders." About Sandell Asset Management Corp. Sandell Asset Management Corp. is a multi-billion dollar global investment management firm, founded by Thomas E. Sandell, that focuses on global corporate events and restructurings throughout North America, Continental Europe, the United Kingdom, Latin America and the Asia-Pacific theatres. Sandell frequently will take an "active involvement" in facilitating financial or organization improvements accruing to the benefit of investors.
SOURCE Sandell Asset Management Corp.
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