USA: Warnaco Dismisses Shareholder's Call For Change
The New York-based firm was responding to claims by Third Point Management Company LLC which said it represented a group of shareholders that has bought 2.25 million shares.
Third Point said it believes Warnaco's assets might fetch more in an auction process than the company's current market value, and wants an investment banker to determine whether it is in shareholders' interests for the firm to continue as an independent concern.
It also complained about executives and directors it considers under-qualified and over-paid and threatened to team up with "other disgruntled shareholders" to arrange a special meeting to replace the board.
But Warnaco hit back in a statement saying the allegations are "baseless" and demands "unreasonable". It said it did not believe further talks regarding the demands were productive or in the best interests of shareholders.
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