QLT Surprised By Proxy Fight With Major Shareholder
Analysts were puzzled by the last-minute move to replace the board. The stock, which soared as high as $115 in mid-2000, has been trading in the $7 range for the past year, but that’s up sharply from its low of less than $2 in 2009.
Doug Miehm of RBC Dominion Securities said the shareholder discontent is “somewhat surprising” given that the current management and board “have done a capable job of adding value over the last few years, and the outlook appears favourable.”
Vancouver-based QLT responded to NB’s filing with a letter to shareholders saying that the Danish fund has not set out an alternative plan for the company, and that its move is “highly disruptive and could impede the progress” of clinical development programs. NB is trying to obtain control of the company “without notice, without a plan, and without paying you for control,” the letter said.