UPDATE 1-Topps dissident shareholders urge change, sale
Thu May 18, 2006 3:57 PM ET
NEW YORK, May 18 (Reuters) - Unhappy shareholders of Topps Co. (TOPP.O: Quote, Profile, Research) have filed a proxy statement to elect three nominees to the company's board of directors, with an eye toward forcing a possible sale of the maker of baseball trading cards and Bazooka bubble gum.
A committee led by hedge funds Pembridge Capital Management LLC and Crescendo Partners, which own 5.8 percent of Topps' shares, accused management on Thursday of allowing the New York-based company's financial performance to deteriorate, hurting its stock price.
They are seeking shareholder support to elect Pembridge President Timothy Brog, Crescendo managing partner Arnaud Ajdler and John Jones, a lawyer, to the board, according to filings Tuesday and Wednesday with the U.S. Securities and Exchange Commission.
"We are committed to explore all strategic alternatives to maximize stockholder value," including a stock buyback, cost cuts and a sale of "all or part of the company," Brog said.
An outside spokeswoman for Topps said the company is cutting costs and adding new products and licensing agreements. "The board is confident that continued execution of Topps' strategic plan will deliver significant value to the company's shareholders," she said.
Pembridge had dropped an effort to name three directors last June, after Topps hired Lehman Brothers Inc. to explore the possible sale of its candy business, including Bazooka.
In September, it pulled the candy business off the market, saying it couldn't find a buyer willing to pay what the company thought it was worth. Instead, it said it would cut jobs to help save $2.5 million a year.
Topps shares rose 2 cents to $8.77 in afternoon trading on the Nasdaq. The shares have traded in a range of $6.87 to $12.49 this decade.
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