FrontFour Capital Group, which owns a 5.3 percent stake in MDC Partners, has launched an effort to oust three of eight directors of the ad/PR holding company.
The Connecticut hedge fund believes a board revamp is needed to create shareholder value at MDC, according to its Jan. 2 Securities and Exchange Commission filing.
MDC shares trade at $2.79. 52-week range is $2.20, $10.10. The firm lost $36.2M on $1.1B nine-month 2018 revenues.
FrontFour wants a meeting no later than March 29 for a shareholder vote to remove directors Scott Kauffman (outgoing MDC CEO), Clare Copeland (vice chairman of Falls Management commercial developer/casino operator) and Irwin Simon (CEO of Hain Celestial Group natural/organic food company.)
Its slate of directors includes Stephen Loukas (partner at FrontFour), Kristen O’Hara (ex-CMO of Time Warner) and David Moran (co-founder of Deep Relevance Partners branding firm).
MDC said it remains focused on its previously announced plan to explore strategic options and search for a CEO.