In a 13D filing on IKON Office Solutions (NYSE: IKN) 10.2% holder, Warren Lichtenstein's Steel Partners II, disclosed a letter noting that the company no longer wish to enter into a confidentiality agreement at this time. The firm requested representation on the board of directors, and recommended John Quicke be consider for a board seat.
Lichtenstein said they are committed, long-term shareholders and wish to work with the board - not against it.
A Copy of the Letter:
It was a pleasure speaking with you and Bob on August 23, 2007. As I hope you already know, I appreciate the time you have given us to discuss candidly our views on IKON Office Solutions, Inc. ("IKON" or the "Company"). As you know, I believe that the IKON shares continue to trade at a significant discount to their intrinsic value and I have made several recommendations on ways to unlock the value of the shares, including by way of a self tender or outright sale of the Company. I was excited for the opportunity to explore with you in further detail my recapitalization proposal in light of other strategic alternatives you indicated are currently available to IKON. It was my expectation that this opportunity would come to fruition after our lawyers finalized a confidentiality agreement, including a standstill, after several weeks of negotiations. However, you advised me the last time we spoke that you no longer wish to enter into the confidentiality agreement at this time.
As you know, Steel Partners is one of IKON's largest shareholders and Steel's position in the Company represents one of its largest investments in a domestic public company. While I understand that there may be developments that prevent you from entering into a confidentiality agreement at this time, SteelPartners has a duty to its investors to protect its investment in IKON and would like to assist IKON in maximizing shareholder value. I believe this could be best achieved with proportionate representation on the Board. With one of my designees appointed to the Board, I believe we can add valuable expertise in assisting the Board in exploring strategic alternatives to maximize shareholder value in an amicable and productive manner. We therefore request that you consider John Quicke, a representative of Steel Partners, for appointment to the Board.
I would like to reiterate that we are committed, long-term shareholders whose priority is to work with the Board - not against it - in doing what is best for all shareholders. Please let me know when you are available to talk so I can discuss with you in further detail the background and qualifications ofMr. Quicke.
Respectfully, Warren G. Lichtenstein