Vinod C. Gupta has resigned from the board of directors of infoGroup. Gupta’s resignation from the board means he no longer holds an official position with the company. He remains its largest shareholder.
Gupta had stepped down from his position as chairman of the board in July 2008, following both an internal and Securities and Exchange Commission investigation into his expenses.
Gupta’s resignation from the board doesn’t come as a surprise: On March 8, the company announced it would be sold to private equity firm CCMP Capital. At the time of the sale announcement, the company filed documents with the SEC stating the entire board would eventually step down.
On March 8, Gupta sold 15,000 shares of infoGroup’s stock at a price of $7.91 per share. But this was a miniscule portion of his holdings. His stake amounts to just under 14.8 million shares.
According to a company release, the total value of the infoGroup sale was $635 million. But a Wall Street Journal report pegged the price at $460 million, and that price is more in line with the $8 per share the company will award stakeholders once the deal is completed.
There may be a bump or two before it is finalized, however. Almost immediately upon announcement of the sale, a number of law firms issued statements indicating they would investigate the sale. Whether these investigations will involve lawsuits or any other actions was not specified in the releases.
Common practice is for firms to pay a premium over the price of the most recent close when acquiring publicly held targets. On March 5, the stock finished trading at $8.16 per share. Monday’s announced price represents a 2% discount from that value. Since Monday, the stock has traded below $8 a share.
Gupta founded the company (then known as infoUSA) in 1972, and served as its CEO until August 2008. According to SEC documents, Gupta’s resignation as CEO was part of a litigation settlement with the SEC. He had maintained a non-chair position on the board since then.
