Cove Street Capital LLC and a group of investors affiliated with the company are seeking to nominate three directors at Wright Investors' Service Holdings Inc.'s next annual meeting.
Cove Street Capital, Jeffrey Bronchick and Marshall Geller formed a group in February to coordinate their purchase of common shares and to jointly deliver their intent to nominate directors in Wright Investors' Service Holdings board. They disclosed beneficial ownership of 1,802,212 common shares, or approximately a 9.06% stake, in Wright Investors' Service Holdings Inc.
The group believes CEO and Chairman Harvey Eisen mismanaged Wright Investors' Service Holdings since 2012, when the company acquired Winthrop Corp. The group said the acquisition resulted in a significant loss to shareholder value. Winthrop was eventually sold for $6.0 million in cash to Khandwala Capital Management Inc. in July 2018.
Despite Eugene Robin and Bronchick's talks with the company's board to implement a new strategic vision, the group claims no alternatives were proposed and Wright Investors' Service Holdings continues to incur unnecessary costs, which they allege primarily benefit Eisen.