WALTHAM, Mass., May 13, 2011 /PRNewswire/ -- Mac-Gray Corporation (NYSE: TUC) today announced that Glass Lewis & Co., LLC and Egan-Jones Proxy Services have recommended that its clients support Mac-Gray's incumbent director nominees. The two firms have advised that shareholders vote for Chairman Thomas Bullock and Directors William Meagher, Jr. and Alastair Robertson on the WHITE proxy card.
"The support of Glass Lewis and Egan-Jones delivers an important message to Mac-Gray shareholders," said Thomas E. Bullock, Mac-Gray's Chairman of the Board. "The opinion of these independent advisory firms is that shareholders should support the incumbent slate of directors and not support the candidates proposed by the TUC IVC Group. We strongly urge all shareholders to vote FOR our highly-qualified director nominees on the WHITE proxy card today via mail, telephone, internet, or in person at the Company's Annual Meeting to be held on May 18."
Additionally, Institutional Shareholder Services Inc. (ISS) has also advised its clients to not vote in favor of the dissident slate of candidates. However, due to its policy on matters of classified boards and shareholder rights plans, ISS recommended a withhold vote on Mac-Gray's incumbent nominees. The Board strongly disagrees with ISS's withhold recommendation and urges all shareholders to vote for the Company's nominees, who have delivered substantial value in terms of stock performance, key financial metrics, balance sheet strength and returning equity to shareholders.
Regarding the director nominees, Glass Lewis & Co., LLC stated the following in its May 4th report:
- "Upon full review, we believe the Dissident has failed to provide sufficient reason for shareholders to replace the incumbent nominees. On the quantitative side, we find many of the TUC Group's arguments lack comparative benchmarks and do not reasonably reflect the financial condition and operating performance of Mac-Gray, particularly over the course of the last several years."
- "...we believe shareholders would be best served by supporting an incumbent board that has, together with current management, improved margins, generated superior share price performance and returned excess capital to shareholders through a regular quarterly dividend."
- "As a first point of review, we see the Dissident states the Company overpaid for a series of acquisitions between fiscal years 2004 and 2008... We find this argument uncompelling...."
- "We believe that our support for the management ballot is merited and that voting the management ballot (WHITE PROXY CARD) is in the best interest of the Company and its shareholders. In arriving at that conclusion, we have considered the following factors:
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV