Safeguard Scientifics Inc. has responded to two major shareholders that criticized the company's director nomination process.

The company said neither Sierra Capital Investments LP nor Yakira Capital Management Inc. has offered any new, credible and actionable ideas to enhance shareholder value even after numerous discussions between the shareholders' representatives and the company's board and management team.

Safeguard Scientifics said the board and its nominating and corporate governance committee are reviewing potential director candidates, including those put forward by the two major shareholders.

The company reiterated its strategic plans, saying it will execute a strategy to streamline its organizational structure and increase shareholder value. It said it has stopped deploying capital into new partner company opportunities and is now focused on existing partner companies. The board and management are also implementing cost-cutting measures that are expected to yield $5 million to $6 million in savings per year, according to the company.

Safeguard Scientifics said its board and management team are committed to acting in the best interests of the company and its shareholders and remain open to any credible and actionable ideas for enhancing shareholder value.