Sloane & Co. handles Outerbridge Capital Management as the New York investment firm wages a proxy fight against Comtech Telecommunications due to the wireless company’s “uninspiring results.”
In an Oct. 6 letter to Comtech’s board, Outerbridge faults it for failing to engage in a dialog to “resolve concerns around underperformance strategy, lack of relevant expertise on the independent board, financial reporting and poor governance.”
Comtech announced Oct. 4 that COO Michael Porcelain would succeed CEO Fred Kornberg at the end of the year.
Porcelain, who was CFO for twelve years, a time during which the company “suffered sharp declines in organic revenues and profits and failed to generate a compelling return from allocated capital,” according to Outerbridge’s Oct. 6 letter.
Comtech disagrees with Outerbridge’s assessment of its business and is “disappointed” with its comments.
It has “recently taken a number of important steps demonstrating our commitment to ongoing refreshment and sound governance,” according to its response to Outerbridge.
“Despite persistent headwinds related to the pandemic and unprecedented supply chain disruption,” Comtech says it significantly improved the book-to-bill ratio and won new contracts that are expected to deliver several hundreds of millions of dollars of incremental growth.
Sloane & Co. has Dan Zacchei and Joe Germani working for Outerbridge.
Kekst CNC’s Nicholas Capuano represents Comtech.
Stagwell owns Sloane & Co. Publicis Groupe is parent of Kekst & Co.