DSP Group Inc. (DSPG: Quote) issued a letter to its shareholders regarding the potential proxy contest. The company stated that Starboard’s proposal included the formation of a new strategic board committee, consisting of four members, two of whom would be Starboard nominees and the chairman of which would be a Starboard nominee as well. Thus, Starboard’s control of that committee would be negative control, the ability to prevent it from taking any action, not the ability to compel it to act, DSP said.
The company said it remains committed both to doing the right thing for the company and all of its stockholders, being open-minded to ideas and suggestions from all quarters, including Starboard, and to continuing to seek an amicable agreement with Starboard, that would avoid the distraction and expense of a proxy contest without giving Starboard effective control of the board and its committees.
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by RTT Staff Writer
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