Reuters- Hedge fund shareholders in Lancaster Colony Corp (LANC.O: Quote, Profile, Research) said on Monday they plan to run a slate of board candidates at the consumer products maker in the latest move in a increasingly acrimoniouscampaign, according to a regulatory filing.
Barington Capital Group, led by noted activist investor James Mitarotonda, told the company in a Sept. 17 letter that the company “has the potential to deliver considerly stronger returns for shareholders.”
But Mitarotonda also said, “we lack faith in the ability of the board to improve shareholder value based on its track record to date.”
“We therefore intend to nominate alternative candidates for election to the board” at its 2007 annual shareholders meeting, the hedge fund said in the letter, which was filed with regulators.
Barington and hedge funds including RJG Capital Partners and D.B. Zwirn & Co held about 1.69 million shares of Columbus, Ohio-based Lancaster, or about 5.6 percent of its stock.
Lancaster Colony shares closed at $35.90 on Nasdaq on Monday, down 85 cents, or 2.3 percent.
