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HomeStreet claps back at activist, says move not an issue of technicality

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HomeStreet claps back at activist, says move not an issue of technicality

HomeStreet Inc. said its decision to render Roaring Blue Lion Capital Management LP's proposals and board nominations as invalid "was not just an issue of interpretation or technicalities."

Roaring Blue Lion had earlier criticized HomeStreet's move as a "disgraceful" attempt to "avoid accountability."

In a press release, Seattle-based HomeStreet outlined several points wherein the shareholder activist failed to meet certain requirements under the company's bylaws.

The company said Roaring Blue Lion did not fully disclose information about the participants of its proxy solicitations, a requirement under the SEC proxy rules cited in the company's bylaws. The company said the shareholder activist also failed to disclose whether it would seek reimbursement of its proxy solicitation costs from HomeStreet shareholders.

HomeStreet added that board nominee Paul Miller failed to describe the compensation he received from a third party as part of his nomination and Ronald Tanemura, Blue Lion's other nominee, could not confirm his ownership position in HomeStreet securities.

The company further claimed that the notice was not submitted by Roaring Blue Lion itself but through a different legal entity that is not a part of its Schedule 13D group.

HomeStreet also noted that the shareholder activist had months to prepare its notice but chose to deliver it on the eve of the deadline, which gave it no chance to fix potential deficiencies.