(Corrects fourth paragraph of May 13 story to show Alden and
affiliate own 3.5 percent of Visteon, not 10.5 percent)
DETROIT May 13 Visteon Corp (VC.N) was
"irresponsible" in its effort to thwart a top shareholder from
nominating board members, according to a Visteon director who
is resigning from the auto supplier's board.
William Redmond told the company that he would resign on
May 8 and his resignation would be effective on May 20,
according to Visteon filing with U.S. securities regulators
In a letter attached to the filing, Redmond said Visteon
exhibited "poor handling" of its shareholders, including Alden
Global Distressed Opportunities Master Fund LP.
Alden, a hedge fund based in the Cayman Islands, sought to
nominate directors to Visteon's board during the company's
upcoming annual meeting in June. Alden and its affiliate own
about 3.5 percent of Visteon.
Visteon asked Alden to hold off until after the meeting and
said it would consider two directors in September, according to
Redmond's letter, which was filed with the U.S. Securities and
Exchange Commission on May 12.
Visteon hired legal counsel and a public relations firm to
"gird for a proxy fight" in case Alden rejected the proposal,
"Spending the money of the people who own this company to
battle the reasonable agenda they have put forth and do so at
the expense of value creation is, in my view, irresponsible,"
Redmond wrote in the letter dated May 8.
The letter came days before Visteon announced it would add
two new directors to its board by Aug. 1. Those directors will
be culled from pool of candidates recommended by Alden.
Visteon also disclosed Redmond's exit in the press release,
saying one of the directors would replace Redmond, who joined
Visteon's board after its emerged from bankruptcy protection on
Visteon said it "reached an agreement with Alden that is
consistent with the best interests of all of its shareholders,"
in the May 12 SEC filing.
(Reporting by Deepa Seetharaman; editing by Carol Bishopric)