Mequon-based Milwaukee Private Wealth Management Inc. is planning to appoint its own candidates to the board of Coppell, Texas-based ALCO Stores Inc. at the company’s 2014 annual meeting.
The hostile move comes after MPWMI, which owns 3.5 percent of the outstanding common stock of ALCO, attempted to voice its concerns to the board of directors on several occasions about the company’s poor performance.
Since MPWMI acquired an interest in ALCO four years ago, the share price has dropped by more than 25 percent.
The wealth management firm feels its board nominees will act in the best interests of shareholders.
“In light of the board’s inaction to meaningfully address the company’s continuing underperformance, we were compelled to take the necessary steps towards nominating a slate of new, highly-qualified and independent directors to the Board. On March 6, 2014, we delivered a formal nomination notice to the company, in which we provided our intention to nominate an alternative slate of director candidates for election to the Board at the 2014 annual meeting of shareholders,” according to MPWMI’s statement.
