Houston Chronicle – Reliant Energy said Tuesday it reached an agreement with hedge fund Seneca Capital Advisors, which had threatened to start a proxy battle to gain three board seats at the Houston-based power company.
Reliant said Seneca had agreed not to run a slate of board candidates, while Reliant would appoint a board director “who is a representative of a substantial institutional stockholder of the company” by Sept. 1.
Seneca said in a prepared statement that it looks forward to working with Reliant to enhance shareholder value “and to the nominating committee’s consideration of a senior Seneca official” forthe Reliant board.
New York-based Seneca holds 4.3 million shares, or 1.4 percent of Reliant, according to regulatory filings.
Reliant has been under pressure to improve its operations as investors brace for another loss from the Houston-based company this year.
Seneca’s statement did not identify an official, and a spokeswoman for the company declined to comment.
