Aerojet investors poised to back CEO in board challenge from exec chair

By Svea Herbst-Bayliss

BOSTON (Reuters) – Aerojet Rocketdyne shareholders are poised to elect a gaggle of administrators headed by the corporate’s chief government in a bitterly fought election the place the corporate’s government chairman additionally sought management of the board, folks acquainted with the matter stated on Wednesday.

Chief government Eileen Drake and Warren Lichtenstein, the chief chairman, every nominated eight director candidates for election to the U.S. rocket maker’s board.

The 2 have been battling one another for the reason that collapse of a deliberate $4.4 billion merger with Lockheed Martin Corp earlier this yr and each have sued one another in Delaware court docket.

The sources requested anonymity to debate the possible consequence of the shareholder vote earlier than an official announcement by the corporate. The assembly is being held on Thursday and traders might nonetheless vote or change their votes till the assembly begins.

Representatives for the corporate and for Lichtenstein couldn’t be reached for remark.

Lichtenstein, whose Metal Companions and associates personal greater than 5% of the corporate, argued operational enhancements and adjustments to capital allocation have been wanted to assist push up the corporate’s share value to draw new patrons. He additionally needed to carry again Mark Tucker, a former Aerojet chief working officer, as CEO.

However the main proxy advisory corporations, ISS and Glass Lewis, advisable traders again Drake’s slate and finish the present standoff. ISS argued there’s not sufficient proof to counsel Drake should be changed and that Lichtenstein mustn’t serve on the board at this level.

Glass Lewis praised Drake for having put collectively a well-rounded slate of candidates and stated the corporate usually carried out throughout her tenure.

(Reporting by Svea Herbst-Bayliss; Modifying by Lincoln Feast.)