Sierra Geothermal Power fights possible take-over approach
Canadian Sierra Geothermal Power is urging shareholders to support the current Board and oppose an attempt by dissidents to seize control of the Board at a special meeting scheduled for January 26, 2010, announced in recent management circular.
In a management circular to shareholders, Canadian Sierra Geothermal Power is urging “shareholders to support the current Board and oppose an attempt by dissidents to seize control of the Board at a special meeting scheduled for January 26, 2010.”
In the letter, the company says that the shareholder’s “vote has never been more important. A dissident shareholder, controlled by investor Richard Rule, is attempting for the second time to take control of your Board. We believe Mr. Rule’s objective is to help our competitor Ram Power, Corp. to acquire SGP at a discount price.
“The Board is open to all strategic alternatives”, so the company in its circular, “including a transaction if it accurately reflects the value of SGP and your investment. A discount price transaction is not in the best interest of SGP’s shareholders. We urge you to safeguard your investment and vote the GREEN proxy against Mr. Rule and in support of your Board and management.”
The letter also implies that its competitor Ram Power, as well listed on the Toronto Stock Exchange, is behind this attempt of gaining control over the company for a discount price.
“A special shareholders’ meeting of SGP has been scheduled for 10:00 a.m. on January 26, 2010 at Suite 800 – 885 West Georgia Street, Vancouver, British Columbia, Canada. The meeting will be held to consider the proposals to have Mr. Rule’s seven hand-picked nominees appointed to your Board. We believe these nominees are not up to the task of leading SGP into the future. We urge you to read the Management Circular and support the current Board and management.
If you have any questions or need assistance in completing your GREEN proxy, please call Laurel Hill Advisory Group at toll free 1-888-534-1149 or email at [email protected]”
For the full circular use link below.
Source: Company Management Circular via website of Sierra Geothermal Power