Chicago-based Harris Associates L.P, Dun & Bradstreet’s largest shareholder, yesterday sent D&B chairman and CEO Volney Taylor a strongly worded follow-up to its Aug. 30 demand that Dun & Bradstreet explore options, including soliciting bids to sell the company, in order to maximize the value for the shareholders.
Harris Associates said that D&B’s Sept. 15 promise to have “long-time financial advisor, Goldman Sachs & Co&….closely monitor implementation of management’s plans to improve financial performance” as well as D&B’s decision to shift Frank Sowinski from CFO of The Dun & Bradstreet Corporation, to the position of president of the D&B Operating Company were insufficient to address Harris’ concerns.
Commenting on D&B chairman and CEO Volney Taylor’s Sept. 15 statement that “We remain convinced we have the right strategy and are working hard to improve execution and drive revenue and operating income growth. We are also making a concerted effort to reduce costs,” Harris said that it could “see no conceivable way the present DNB strategy can achieve a stock value even appraoching, much less exceeding, what we believe can be realized in a sale.”
In its most recent letter, Harris requests that Dun & Bradstreet disclose all correspondence it has received from stockholders regarding its initial letter, and call a special shareholder meeting. The purpose of the meeting would be for shareholders to vote on whether the board should solicit bids for the company, and whether the company’s poison pill should be “redeemed”.
The letter closes with the statement “We are determined to obtain what rightfully belongs to our clients as owners of Dun & Bradstreet. We will not go away.”
Dun & Bradstreet spokesperson Bill Doescher told DIRECT Newsline that the company had received the letter from Harris Associates, but had that it would be inappropriate for him to comment on the demand for the special shareholder meeting, or any of the allegations. Reading from a prepared statement, Doescher said that “Dun & Bradstreet’s board and management take our responsibility to shareholders very seriously, we continue to be confident we have the right strategy to create value and we are working hard to improve and accelerate execution of that strategy.”
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