Flow International Corporation (NDAQ:FLOW) shares moved up $0.26, or 2.39%, to $11.16 today after Daniel Loeb's Third Point disclosed a 13.6% stake in the company and expressed its disappointment with the company's board of directors. In particular, Loeb was concerned with the company's lack of response to his
February 2nd call to retain, and publicly disclose, a well-recognized investment bank to assist the company in putting itself up for sale.
Several members of the company's board and management flew to New York to meet with Third Point; however, very little has been done since. Mr. Loeb is now demanding that the company retain a publicly identified and well recognized investment bank, with a clear mandate to explore strategic alternatives including a sale of the company. Further, the hedge fund insisted that the company comply with best practices in corporate governance by repealing its poison pill and de-staggering the election of its board. Finally, Loeb warned the company not to make the same mistake other have made by under-estimating his resolve in this matter - we know that Loeb is not at all adverse to replacing members of the board via a proxy fight. This makes FLOW a stock
worth watching as any sale of the company would likely come at a healthy premium to the current market price!
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