Acxiom Chief Fires Off Letter Critical of Board Seat Offer by ValueAct

Acxiom board Chairman Charles Morgan sent a strongly worded letter to ValueAct Capital?s managing member Jeffrey W. Ubben, according to an AP article.

“You have criticized our strategies and business practices, but you have offered no specific alternatives,” Morgan wrote. He added that ValueAct would disrupt Acxiom’s goal of considering shareholders, clients and associates’ interests over the long term.

The hubbub?s over ValueAct?s proposal to increase its stake to nearly 20 percent ? up from the 11.7 per cent it already owns. In exchange for the additional $175 million investment, ValueAct wants three seats on the board, including one for Ubben.

Hence, the letter.

Acxiom had previously rejected a $2 billion takeover offer from ValueAct last year. The alternative, a direct hostile takeover, would be difficult because Acxiom has a “poison pill” provision that would automatically reduce the investment value held by whoever was trying to take over the company, Morgan said.

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