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Investor Dumps Infogroup Shares
US investment firm Cardinal Value Equity Partners has sold nearly 2 million Infogroup shares, in advance of a shareholder vote at the end of this month which will determine whether the firm should be sold to CCMP Capital Advisors.
In March, Infogroup agreed to be acquired by affiliates of CCMP for a total of around $635m.
The sale has since been opposed by a number of shareholders, who claim that the deal - which equates to $8 in cash for each share of common stock - 'significantly undervalues' the firm.
Before selling the 2 million shares, Cardinal had reported holding 5.4% of Infogroup stock: this is now reduced to 2%.
Back in 2008 Infogroup, which owns Opinion Research Corporation (ORC) set up a special litigation committee in response to a mismanagement lawsuit initiated by shareholders Cardinal and Dolphin Limited Partnership.
The lawsuit, which questioned the way Infogroup founder Vinod Gupta used company money to support his personal lifestyle, was instrumental in Gupta's sacking from his role as Chairman.
Web site: www.infogroup.com .
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