InfoUSA’s Gupta Agrees to One-Year Stock Purchase Moratorium
Vinod Gupta, chairman and CEO of infoUSA, has reached an agreement with his company under which he will not directly or indirectly purchase any additional infoUSA securities. He will be able to exercise stock options the company has granted to him. The agreement runs through July 21, 2007.
The agreement will cease to apply should the company enter into a merger or acquisition deal with a third party, or should a change in control become likely.
Additionally, the company’s board named Bill L Fairchild, a member of its board, lead independent director. According to the duties of this newly established position, Fairchild will be responsible for coordinating the activities of the other independent directors. Fairchild has been a member of the company’s board since November, and serves on the Audit, Compensation and Nominating and Corporate Governance committees of the board of directors.
InfoUSA recently fended off a challenge to its board of directors from minority shareholder Dolphin Limited Partnership, L.P. Dolphin had alleged that the company did not fully explore strategic alternatives after rejecting an $11.75 per share takeover bid from Gupta. On Tuesday, infoUSA’s stock closed at $9.20 per share.
