Steel Partners II, L.P. Obtains Stockholder Information from Del Global Technologies Corp.
NEW YORK--(BUSINESS WIRE)--April 15, 2003
Steel Partners II, L.P., a member of a group of Del Global Technologies Corp. (Pink Sheets: DGTC.PK) stockholders seeking representation on the Del Global Board, today announced that in response to a lawsuit filed by Steel against the Company in the Supreme Court of the State of New York, County of New York, Del Global has provided Steel with the stockholder information is was seeking.
Warren Lichtenstein, Managing Partner of Steel Partners II, stated, "We regret having been forced to go to court to obtain information that, as the Company belatedly concedes, we have every right to. Their initial refusal was just another example of corporate waste - we believe both sides could have easily avoided these totally unnecessary litigation expenses."
David Wright, an investor, member of the stockholder group and one of the group's nominees added, "We view the Company's failure to provide this information absent litigation as symptomatic of the indifference that we believe has characterized its dealings with its stockholders over the past few years and continues today. We question, for example, the information vacuum regarding the recent "retirement" of two directors. We understand that one of them, David Michael, is the recipient of a "Wells Notice" from the SEC indicating that the SEC is considering whether or not to recommend the filing of a civil proceeding against Mr. Michael in connection with Del Global's accounting issues. We question the candor of any shareholder communication that omits mention of this fact, and for that matter, the bestowing of the Separation Agreement and General Release of Claims upon Messrs. Tiernan and Michael, and again call for the public disclosure of these "retirement" agreements. The current President and CEO, Samuel Park, recently stated that the Company has "corrected the governance issues that led to Del's problems." In fact, the changes Mr. Park refers to were only implemented this month after negotiations between the group and the Company to settle the contested solicitation of proxies failed."
In addition to Mr. Wright, the group will solicit proxies for the election of venture capitalist and nationally recognized corporate governance consultant Gerald M. Czarnecki, and nationally recognized corporate governance expert Suzanne M. Hopgood, President of The Hopgood Group, LLC; former President, CEO and a director of Houlihan's Restaurant Group, Inc. Ms. Hopgood has extensive experience in corporate workouts, turnarounds and restructurings.
CERTAIN INFORMATION CONCERNING PARTICIPANTS
Steel Partners II, L.P. ("Steel") has made a preliminary filing with the SEC of proxy materials to be used to solicit votes for the election of its nominees at the Annual Meeting of stockholders of Del Global Technologies Corp. (the "Company") scheduled for May 14, 2003.
Steel strongly advises all stockholders of the Company to read the proxy statement when it is available because it will contain important information. Such proxy statement will be available at no charge on the SEC's web site at http://www.sec.gov. In addition, the participants in any solicitation will provide copies of the proxy statement without charge upon request. Requests for copies should be directed to the participants' proxy solicitor, Innisfree M&A Incorporated, at its toll-free number: 888-750-5834. Detailed information regarding the identity and interests of individuals who may be deemed participants in the solicitation of proxies relating to the Annual Meeting is available in the preliminary proxy statement filed with the SEC on April 4, 2003.
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|Date:||Apr 15, 2003|
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