Fairview Capital Investment Management said late last week that it plans to vote against the sale of sneaker company Saucony to Stride Rite, according to apparel Web site just-style.com. Fairview, which owns a 2.6% stake in Saucony's outstanding shares, said the $23-per-share sale price is inadequate.
Fairview's opposition to the deal hinges on the fact that company shareholders will receive "zero control premium and none of the projected cost-savings synergies," the report said. The shareholder also cited Saucony's significant insider ownership and dual-class share structure as well as a lack of an independent committee in its strategic review.
Fairview is also against the proposed executive benefits payments of $26 a share for Saucony's president and chief executive John Fisher and Saucony executive vice president, business development, Charles Gottesman.
Stride Rite, a designer and marketer of footwear, agreed to acquire Saucony for $23 a share on June 2.
Fairview is an independent firm that provides investment management services to a diversified venture capital and private equity fund-of-funds.