Oct. 21, 2009 (Business Wire) -- Adaptec, Inc. (Nasdaq:ADPT), the global leader in I/O innovation today issued the following statement in response to unfounded attacks by Steel Partners, a hedge fund that is a minority stockholder in Adaptec, on members of Adaptec’s Board and management in its letter of Oct. 15, 2009:
“We urge Adaptec stockholders to reflect carefully on Steel’s extensive record of misleading statements – including its misleading attacks on the professional history of Sundi Sundaresh, Adaptec’s CEO– and ask why Steel is resorting to such tactics rather than making its arguments on the basis of the merits of its position,” said Douglas E. Van Houweling, Chairman of Adaptec’s Governance and Nominating Committee. “Stockholders should not allow Steel’s attacks to obscure the fact that it has no discernible plan for Adaptec’s future. Indeed, these attacks on Adaptec’s CEO come just weeks after Steel lobbied the very same CEO to join its board slate.
“The Board majority has consistently been willing to give Steel representation and a voice on the Board. Unfortunately, Steel’s representatives have not been collaborative members of the Board,” Van Houweling continued. “Steel insisted on holding the chairmanship, though its representative did not have the background required to engage with management or oversee the strategic development of the business. Further, the Board majority was hampered in many instances by counterproductive behavior in the boardroom: for example, Steel representatives repeatedly made threats that disrupted, and continue to disrupt, Board meetings.
“Steel’s boardroom behavior and lack of engagement contributed to the Board majority’s decision to review the Board chairmanship – a position that had been filled by a Steel principal after Steel had threatened a proxy contest if it did not control the chairmanship. The Board ultimately concluded, during a regular meeting attended by all of the Steel representatives, to appoint a highly qualified and professional director to the position of Chairman at this critical time in Adaptec’s history,” Van Houweling added.
In addition, Steel substantially distorted Mr. Sundaresh’s career accomplishments in Steel’s recent communication to stockholders. The very examples Steel cites are, in fact, compelling illustrations of his track record of success and integrity as a manager over the past 15 years:
- In Mr. Sundaresh’s previous role at Adaptec, from 1993 to 1998, he led the growth of a $90-million division into a $400-million business by successfully integrating acquisitions, product development and product diversification.
- In 1998, in part as a result of his successes at Adaptec, Mr.
