Tuesday, March 10, 2009

Orthofix opposes Ramius board recommendation

By Mass High Tech staff

Orthofix International NV, a medical devices firm in Boston, has announced the distribution of a letter to shareholders that opposed Ramius LLC’s recommendation of Peter Feld to the company’s board of directors, replacing a current board member.

The board nomination would be considered at the Orthofix “Special Meeting of Shareholders” planned for April 2, 2009.

Ramius is a New York-based investment management firm with a five percent stake in Orthofix (Nasdaq: OFIX). Ramius officials have backed the nomination of Feld to the board. Orthofix, on the other hand, opposes the nomination and instead has asked Ramius to consider other nominees in Charles Orsatti and J. Michael Egan.

The dispute stems Orthofix officials’ belief that Feld is underqualified and less experienced. The company stated in a press release, “It is unclear what value this 29-year-old individual could bring to the Orthofix Board.” Orthofix critiqued Feld’s five-month role as a board member at Sharper Image.

Last week, Orthofix announced its opposition of Ramius’ call for the sale of Orthofix subsidiary Blackstone Medical Inc. Orthofix bought the Springfield-based maker of spinal implant and instrument products for $333 million in 2006.

Orthofix reported a loss in fiscal 2008 of $228.5 million on revenue of $519.7 million.