Riley Investment Management says it will sue the management and board of directors at Regent Communications because the company has not called a special shareholders meeting that Riley requested. The investment group has been pushing for a sell-off of Regent's assets and wants to put three directors of its choosing on the board.
Riley claims that it has backing from holders of more than 20% of Regent's stock (Riley itself now owns 6.7%) demanding that a special shareholders meeting be called for September 3rd. Riley said it would file suit in Delaware Chancery Court, either today or yesterday, because Regent's management and board are "citing irrelevant technicalities" to stall calling the special meeting. "While more than 20% of the Company's shareholders delivered to the Company requests for the special meeting, we were initially told that the 20% requirement had not been met. After sending the Company for a second time documentation that 20% of the shareholders had made the same request for a special meeting, we were told that our request was invalid because the Company did not receive 'original' copies of the request from each and every stockholder making the request. There is no such requirement in the Company's bylaws or Delaware law," Riley said in its latest letter.
Asked about Riley's call for the special meeting during his quarterly conference call earlier this week (8/8/07 RBR #154), CEO Bill Stakelin said Regent management and its legal advisors would give consideration to all shareholder proposals.