K Capital proposes new ‘Max director

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11 April 2005 – Boston (MA): OfficeMax’s third largest shareholder is to put forward a nomination for the company’s board of directors at next month’s annual shareholders’ meeting.

Earlier this year Boston-based investment firm K Capital, which owns approximately a 6.2 per cent stake in the power player, urged the OfficeMax board to consider a break-up or sale of the company. The election of its nominee Karl Meyer at the shareholders’ meeting on 9 May would significantly enhance its position.

A statement issued by Capital on Friday evening read: "K Capital urges all OfficeMax shareholders to elect Karl Meyer to the company’s board of directors. We believe that election of a new, independent member to OfficeMax’s board would be mutually beneficial to the company and its shareholders. Among other things, electing a new, independent director should provide a new voice and fresh perspective for a board that continues to struggle with a number of operational, management and financial challenges."

K Capital’s choice would directly oppose current independent director nominated for re-election, Carolyn Ticknor. And ‘Max is not happy. Executive chairman/CEO George Harad said: "We are disappointed that K Capital has opted to conduct an election contest, especially in light of our express invitation to K Capital to present to us any specific strategic proposal for the Company they might have.

"Instead of delivering such a proposal to us, they have chosen to create unnecessary distractions for our board, management and employees at this important time. We believe the best interests of our shareholders will be better served by re-electing Ms Ticknor, who is an independent and highly-qualified director, and by continuing to move forward aggressively with our current business plan."