Sunday, July 12, 2009

CPI Corp.

The preliminary count indicates that the incumbents of CPI have prevailed over the challenge from Ramius.

CPI is the operator of the PictureMe Portrait Studios, which canbe found in Sears and WalMart locations.

Ramius had nominated Peter Feld and Joseph Izganics, and has complained that the company's current board is too much under the influence of Knightspoint Partners.

On Wednesday, the shareholders voted for the company slate of James Abel, Paul Finkelstein, Michael Glazer, Michael Koeneke, David Meyer and Turner White. All but Finkelstein, who is a new nominee, and Glazer, who joined the board last year, have served on the board since 2004.

Feld has tried to put the usual good face on this. "At the end of the day, the company is stronger than it was before our investment," he said. "We were an active shareholder and board member for five years and we did make substantial changes."

Andrew Freedman, a lawyer for Ramius, has a less sportsmanlike take. The "record daye" was May 9, i.e. anyone who owned shares as of that date were eligible to vote, but Freedman said a confusing process may have put ballots in the hands of people who acquired shares after that date. “We see the potential for double voting.” So we may hear more of this matter yet.

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