Shareholder calls on InfoSpace for $300M return

Investment management firm Sandell Asset Management notified embattled mobile search solutions developer InfoSpace of its intention to nominate three independent candidates for election to the company's board of directors. Sandell, which owns about 8.8 percent of InfoSpace shares, contacted the mobile firm earlier this week to voice its concerns over its "lack of capital return to shareholders from InfoSpace's large cash balance and complacency over cost controls," requesting that InfoSpace immediately return $300 million cash "in the form of a $200 million Dutch tender offer at a premium to the current share price and a $100 million special dividend." Sandell also called for InfoSpace to slash an additional $15 million in costs to increase profitability after recent restructuring, and suggested the firm hire a financial advisor to explore sales options.

"We made the decision to nominate an alternative slate of directors because we do not feel the necessary steps are being taken by the current board and management to maximize value at InfoSpace," said Sandell Asset Management founder, principal and CEO Thomas Sandell in a prepared statement. "We feel that shareholder representation on the board is warranted to ensure that all alternatives are considered and a course of action is taken to close the gap between the current share price and its inherent value. We hope to work constructively with InfoSpace's management and board to improve the value for all shareholders."

For more on the Sandell maneuvers:
- read this release

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