Arrow International Fires CEO

Arrow International(ARRO Quote) said Thursday its board of directors had fired the company's chief executive officer, Carl Anderson Jr. The medical-device company said the board had lost confidence in Anderson's ability to lead the company, on the grounds of failed earnings and sales targets.

The board of directors named Philip Fleck, retired chief operating officer, to serve as interim president and chief executive, effective immediately. It also appointed James Macaleer to serve as nonexecutive chairman of the board.

Arrow also gave updated expectations for the 2007 fiscal year. It now expects to deliver results near the low end of the targets it provided with its second-quarter earnings, which were net sales of $515 million to $525 million and earnings in the range of $1.40 to $1.48 a share. Two analysts surveyed by Thomson Financial had estimated that the company would earn $1.42 a share for the year.

Accompanying Anderson's departure, McNeil Trust, a 10% shareholder, aims to gain complete control of the company's board. McNeil Trust plans to nominate eight people for election as directors at the 2007 annual shareholder meeting.

"If elected, this slate of the McNeil Trust's eight nominees would effect a complete takeover of the company without the McNeil Trust purchasing any additional shares of the company stock or paying any premium to all other shareholders for this control," according to an Arrow press release.

The company said that while this doesn't comply with its advance notice provisions, it won't stand in the way of the nominations. Arrow will hold its 2007 annual meeting on Aug. 31, at which time shareholders will vote on its slate of directors, the McNeil Trust's nominees and any strategic alternatives.

Arrow International's shares closed Thursday's session up 31 cents, or 0.8%, to $38.40.