Nautilus Inc. has sent a message to its shareholders, urging them to reject a takeover bid of its board of directors.
According to a statement from Nautilus, Edward Bramson and Shereborne, Bramson’s hedge fund, have requested a special shareholder meeting for the purpose of replacing a majority of Nautilus’s board.
“…[A]pproval of Sherbrone’s proposals would leave control of your company in the hands of individuals with no apparent fitness industry experience and individuals who have not provided any new ideas that your Board believes would build shareholder value,” Nautilus’s letter said.
Nautilus also detailed a turnaround plan, which includes:
* Eliminating approximately $10 million in annual fixed expenses by reducing its workforce by approximately 140 employees (9% of its entire workforce);
* Hiring an investment bank to explore the sale of its technical apparel and footwear business,Pearl iZUMi;
* Implementing an inventory reduction plan to decrease its inventory and increase cash by $20 million by the end of 2007.
* Developing a global profitability and growth strategy for its commercial, direct and retail business lines; and
* Improving the financial terms for its previously announced acquisition of Land America by $7 million and negotiating a deferral of $22.5 million in payments for an additional ten months.
Network
