ModusLink Global Solutions™, Inc. (NASDAQ: MLNK), today announced that independent proxy advisory firms, Egan-Jones Proxy Services (Egan-Jones), Institutional Shareholder Services (ISS) and Glass Lewis & Co. (Glass Lewis), have issued reports in connection to ModusLink's 2011 Annual Meeting of Stockholders to be held on January 20, 2012. Egan-Jones recommends that its clients vote for ModusLink’s two director nominees - Thomas (“Tom”) H. Johnson and Jeffrey (“Jeff”) J. Fenton. ISS supports the election of ModusLink nominee, Jeff Fenton. All three firms recommend that ModusLink stockholders reject Peerless Systems Corporation (NASDAQ: PRLS) (“Peerless”) nominee, Timothy E. Brog.
In its report, dated January 3, 2012, Egan-Jones states:
“We believe that our support for the management is merited and that voting the management ballot (WHITE PROXY CARD) is in the best interest of the Company and its shareholders.” The report also states: “We are not persuaded that the dissidents’ nominees would bring appropriate backgrounds and experience to the Board.” 
In response to these reports, ModusLink issued the following statement:
|We are extremely pleased that Egan-Jones supports the election of ModusLink’s two highly-qualified and experienced director nominees. ModusLink’s Board and management team are actively engaged and committed to building value for all ModusLink stockholders and have the necessary depth and breadth of expertise in areas that are critical to ModusLink’s continued success. We are confident that our Board and management team, including our director nominees – Tom Johnson and Jeff Fenton – is the right team to continue leading ModusLink as we push forward on executing our plan to set the Company on a path to sustained growth in revenue and profits, which is already delivering results, and also continue to conduct a comprehensive review of strategic alternatives to enhance stockholder value. We strongly urge all ModusLink stockholders to follow the recommendation of Egan-Jones and protect the value of their investment by voting for our Director nominees on the WHITE proxy card today.|
|We are also pleased that ISS supports the election of ModusLink’s director nominee, Jeff Fenton. However, we believe that ISS and Glass Lewis reached the wrong conclusion in failing to support our nominee Tom Johnson. Both ModusLink director nominees, like every member of the Company’s Board, are committed to representing the interests of all ModusLink stockholders, not those of one stockholder.|
|In contrast, we strongly believe that, if elected, the Peerless nominees could interrupt the ongoing implementation of ModusLink’s strategic plan, disrupt the current review of strategic alternatives, reduce the level of relevant experience on the Board and negatively impact stockholder value. This is supported by the Peerless nominees’ lack of any relevant experience related to the industry in which ModusLink operates and their failure to provide any strategic or operational suggestions that might lead to improved stockholder value creation at ModusLink.|
|This is further demonstrated by comparing the experience of ModusLink nominee Tom Johnson to that of Peerless nominee, Jeffrey Wald:|
|Furthermore, Peerless, which owns approximately 2 percent of ModusLink stock, is seeking to control 25 percent of the Company’s Board in order to pursue its own short-term agenda. Peerless has been a ModusLink stockholder for only six months, and since October 4, 2011, Peerless has sold approximately 10 percent of its ModusLink stockholdings.|
|ModusLink is at a critical juncture in its development. We urge stockholders to protect their investment and not risk the Company’s future by exposing ModusLink to Peerless and its nominees. Stockholders should vote for ModusLink’s director nominees on the WHITE proxy card today.|
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