The board of Arlington Asset Investment Corp. is urging shareholdersto vote for its director nominees after Imation Corp. a competing slate.
Imation acted in concert with a fund affiliated withClinton Group Inc. toput up its own director nominees. The Arlington board said the group owns lessthan 0.05% of the company's shares.
The Arlington board said it believes the group's actionsaims to extract value from the company at the expense of other shareholders.The board detailed the group's track record, noting that the Clinton Group tookcontrol of the Imation board and management after it won three seats in a proxycontest in 2015. Arlington's board said in a letter that Imation's board thenengaged in self-dealing transactions, such as authorizing a $35 millioninvestment of Imation's cash to a Clinton Group-managed hedge fund, imposing onImation shareholders a 25% quarterly performance fee deal with Clinton Group inconnection with the investment and reimbursing Clinton Group $600,000 for itsImation proxy fight expenses.
The Arlington board went on to say that, after Clinton Groupwon the proxy contest in May 2015, Imation's stock lost approximately 65% ofits value.
The Arlington 2016 annual meeting of shareholders will beheld June 9.