Destination Maternity (DEST) said Thursday it has sent a letter to its stockholders urging them to vote “FOR” the company’s slate of nominees and in favor of the other proposals recommended by the board of directors by signing, dating and returning the WHITE proxy card sent by the company.
Shares were up 1.7% in recent trading.
The company’s stockholders will be voting a the annual meeting to be held Oct. 19 at the company’s corporate headquarters.
French children’s clothing retailer Orchestra-Premaman and certain affiliates – which had first made an unsolicited offer to acquire Destination Maternity in October 2015, and then entered into a now-terminated merger agreement with Destination Maternity in December 2016 – now seeks to compel the resignation of the company’s four directors eligible for re-election at this year’s annual meeting.
However, the company noted, Orchestra did not recommended any alternative candidates to serve in the existing directors’ place and had interests that were not aligned with those of the other Destination Maternity stockholders.
The company believes that removing its directors, and creating an urgent need to identify, interview and recruit their replacements would inject unnecessary risk and uncertainty into the company’s short and long-term prospects.
The board recommends that shareholders to DISREGARD any voting materials they may receive from Orchestra.