Sunday, December 7, 2008

Tecumseh victory

Tecumseh Products Co. announced Friday that it has defeated a challenge by dissident shareholders led by the Herrick Foundation.

In a statement, the chairman and chief executive of the compressor manufacturer said: "We thank our shareholders for thoughtfully reviewing the voting alternatives and providing their support for our current board of directors and, by extension, for the strategic direction we have set."

Anyway, I did enjoy the opportunity this particular proxy contest gave me to learn a little bit about the different sorts of compressors. See my entries for Nov. 10th and 11th for the particulars.

Tecumseh's class B common stock (the class with voting rights) trades on Nasdaq under the ticker symbol TECUB. It's price reacted well Friday to the late-morning announcement of the incumbents' victory, rising from $8.23 a share to $8.79.

The Herrick Foundation issued a statement that sought to make lemonade out of the lemon-like result. The provocateurs there are encouraged by the supportive votes they did receive, and will continue to seek to protect Tecumseh shareholders' best interests, blah blah blah.

It's the usual post game locker-room stiff-upper-lip stuff.

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