Investors in Radnor’s Safeguard Scientifics Ask for Leadership Overhaul
Yakira Capital Management, which holds 2.41 percent of the shares of Safeguard Scientifics, is calling for a leadership overhaul at the Radnor-based venture capital firm, writes Roberto Torres for Technical.ly Philly.
In a letter addressed to Safeguard chairman Robert Rosenthal published last week, the hedge fund criticized the publicly traded company. It stated that Safeguard has not being willing to engage in continued constructive dialogue. It also questioned whether the company’s leadership had “performed appropriately its fiduciaries tasked with representing the best interests of shareholders.”
The document suggested that the only people currently making money from Safeguard Scientifics are its management and board. Meanwhile, shareholders continue to lose money during a bull market.
The investors also protested the lack of successful exits, as well as the 31.5 percent drop in the company’s share price since Steve Zarrilli took over as CEO six years ago.
The Yakira letter follows a similar document penned by investors Darren Wallis and Joseph Manko and published by Sierra Capital. This also called for a change in leadership and the sale of the company’s stakes in almost two dozen different companies.
Read more about the call for a shakeup at Technical.ly Philly by clicking here.
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