Activist Client Lone Star Value Renews Criticism of Dakota Plains
The Deal (subscription required) reported that Olshan activist client, Lone Star Value Management, has renewed its criticism of Dakota Plains in a letter denouncing the company’s extension of certain shareholder-unfriendly entrenchment devices including a prohibition on shareholder-initiated special meetings and a bar on shareholder action by written consent. The 8% shareholder also pointed out to the lack of independence on the board and alluded that the board’s decision to place two new directors picked by CEO Craig McKenzie was a defense mechanism in anticipation of a proxy battle from the activist. Lone Star Value reiterated its disappointment over the lack of progress or urgency in the strategic alternatives review process the company claims to have undertaken. Steve Wolosky and Ryan Nebel represent Lone Star Value Management in connection with its investment in Dakota Plains.