Investor Says SSE in Talks to Sell for $9+ per Share
Southern
Connecticut Bancorp Inc. (AMEX: SSE) shares opened sharply higher after a
Schedule
13D filing with the SEC revealed that the firm was in talks to sell itself for
more than $9.00 per share. Seidman and Associates, which owns a 6.52% stake in the
company, questioned why the deal hasn’t gone through and why shareholders were not
notified of the impending sale. The activist also nominated their own slate of directors
to effect change and take action to unlock shareholder value.
Here’s a copy of the letter:
You have disclosed to me that the Board has received a written letter
of intent, in excess of $9.00, to purchase Southern Connecticut Bancorp, Inc. (SSE).
In addition, you represented that the Board was speaking with at least two (2) additional
purchasers. You also represented that the Board has unanimously voted to sell
SSE.
Your disclosures to me during our last phone conversation have left me with the impression
that you and maybe some of the other Board members may now not be acting in the best
interest of all the shareholders. I cannot understand why the Board has not
concluded the SSE sale. The Board should now make full disclosure with respect
to the details of the Board’s negotiations so the shareholders can evaluate the Board’s
conduct.
Based upon my many conversations with you, if SSE is not sold, a change in the composition
of the Board, in my opinion, is required. Therefore, I will be nominating Neal
S. Axelrod and myself for election to the Board at the next annual shareholders meeting
in accordance with Section 1.13 of the SSE Bylaws. Hopefully we can avoid a
costly proxy contest. Please contact me to discuss the issues raised in this
letter.
Please distribute a copy of this letter to all of the SSE Board members.
The above story is the opinion of the author only and it does not reflect
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