Heartland Advisors Issues Statement Calling for New Board Members at Analysts International Corporation
Heartland Advisors, investment advisor to the Heartland Funds, today
filed an updated 13D and called for new members of the Board of
Directors of Analysts International Corporation (NASDAQ:ANLY) (“AIC”).
Heartland Advisors is the largest stockholder of AIC, with 9.4% of
shares outstanding.
In a letter to the current AIC Board of Directors (the “Board”),
including independent Chairman Douglas Neve, Heartland Advisors cited
specific issues it believes are causing the company to be discounted in
the marketplace including: lack of a focused business strategy; failure
to adopt corporate governance best practices; and failure to align the
current Board interests with shareholders.
In a letter to current Board members, Heartland wrote: “We are willing
to work constructively with the Board and management to help resolve
these issues; additionally, the company should be open to all strategic
alternatives that would maximize shareholder value.
“There is an urgent need for change at Analysts International Corp.
Heartland Advisors has identified three highly-qualified, independent
candidates who should immediately be added to the Board. These
candidates will help position the company for success and work
constructively with the Board and management to explore ways to build
value for the benefit of all shareholders.
“We are cognizant of the current by-laws adopted by the AIC Board.
Specifically, it is our understanding that the AIC Board has the power
to appoint two additional individuals to the Board without calling a
special meeting, amending existing by-laws or incurring costs (that are
ultimately borne by shareholders). Additionally, we are aware of the
potential upcoming retirement of current Board members. In an effort to
expedite value creation and minimize costs, we suggest that the AIC
Board either: a) amend its current by-laws and expand the Board to
accommodate three new members or b) encourage a current Board member to
retire and appoint three new members.”
The letter was signed by Bill Nasgovitz (Chairman, CIO and Portfolio
Manager) and Jason Schacht and Andy Fleming, Research Analysts.
Heartland Advisors occasionally pursues activism to promote changes that
it believes will help unlock currently unrecognized shareholder value.
About Heartland
Established in 1983, Heartland
Advisors, Inc. is an independently owned equity value investment
manager based in Milwaukee, Wisconsin. As of March 31, 2013, the Firm
managed approximately $5.7 billion. The Heartland family of
value-driven, actively managed portfolios includes distinct U.S. and
international strategies, offered through five separately managed
account portfolios and four mutual funds: Heartland Value Fund
(Investor: HRTVX), Heartland Value Plus Fund (Investor: HRVIX),
Heartland Select Value Fund (Investor: HRSVX), and Heartland
International Value Fund (HINVX). Learn more at www.heartlandadvisors.com.
Portfolio holdings are subject to change. Current and future holdings
are subject to risk. Statements regarding securities are not
recommendations to buy or sell the securities discussed, but rather
illustrations of our value investment strategy. Such statements
represent the portfolio manager’s views when made and are subject to
change at any time based on market and other considerations.
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