Topps Urges Shareholders To Reject Dissident Board Faction (TOPP)

In what appears to be a growing trend to involve shareholders in crucial decisions that affect the future of public corporations, Topps Co. (Nasdaq: TOPP) is urging shareholders to reject three dissident board nominees who want to sell the company, and urged them instead to approve three members nominated by the current board.

The maker of bubble gum, stickers and trading cards believes that Hedge fund Pembridge Capital Management's three nominees to Topps' board would pursue a sale of the entire company, a large special dividend or share repurchase. In response, Chief Executive Arthur T. Shorin said that

company performance will not benefit from the addition of Pembridge's director nominees who, we believe, have no relevant experience and no specific plan to create value for stockholders and may, in fact, undermine the successful implementation of Topps' strategic plan.

However, with the formation of the Topps Full Value Committee, formed by Timothy Brog of the Pembridge Value Opportunity Fund, the company needs to make a better push to convince shareholders that its vision is the right one. Fighting back in a statement on Tuesday, Shorin said, "don't let Pembridge try to derail the strategic plan, especially when that plan is just beginning to bear fruit." More to come on this story, including an Ant & Sons exclusive with the Topps Full Value Committee and Pembridge Value Opportunity Fund.