Activist investor Sandell Asset Management is forging ahead with their proxy contest to replace four directors at Southern Union Corp. (SUG) despite redemptions that have reduced their ownership stake in the Company. On January 2nd Sandell distributed 1.3% of their ownership in SUG to their investors (who now control those votes). Sandell now owns 8.6% of the stock at an average cost of $29.07/share. SUG closed yesterday at $13.47.
On December 5th Sandell sent a letter to SUG announcing their intention to run a proxy contest in order to obtain four seats on the ten member board. Sandell believes the best course of action for SUG shareholders is an immediate sale of the Company.
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