Sandell Asset Management announced Tuesday morning that it notified InfoSpace, Inc. (INSP) of its intention to nominate three highly qualified independent candidates for election to the board of directors at the 2007 annual meeting of stockholders.
Sandell's said the notification follows a letter to the company earlier this week expressing concern over the lack of capital return to shareholders from InfoSpace's large cash balance and complacency over cost controls. Specifically, Sandell asked the Company to immediately return $300 million of cash in the form of a $200 million Dutch tender offer at a premium to the current share price and a $100 million special dividend. Sandell also asked the Company to cut an additional $15 million of costs to improve the profitability of its remaining operations after the restructuring of its mobile division. Further, Sandell has suggested that the Company engage a financial advisor to evaluate the potential sale of the Company in whole or in part.
Sandell Asset Management recently disclosed an 8.8% stake in InfoSpace.
InfoSpace commented on the announcement by Sandell Asset Management and said it will present recommendations regarding its nominees for directors in the Company's definitive proxy statement, which will be filed with the SEC and mailed to all shareholders eligible to vote at its 2007 annual shareholders meeting.