Undavia Group Files Definitive Proxy Statement And Issues Letter To GrafTech Shareholders, Says "The Incumbent Board Has Destroyed Enormous Shareholder Value While Paying Itself Approx. $7M In Director Compensation Since 2019"
Portfolio Pulse from Benzinga Newsdesk
Nilesh Undavia and the Undavia Group, holding approximately 5.9% of GrafTech International Ltd. (NYSE:EAF) shares, have issued a letter urging shareholders to vote for Undavia's election to the board at the upcoming Annual Meeting on May 9, 2024. The letter criticizes the current board for poor decision-making, including the appointment of the former CFO as CEO, environmental risk mismanagement, and excessive director compensation despite significant shareholder value destruction. Shares have dropped 90% since the IPO, and bonds trade at 64 cents on the dollar. Undavia aims to add an independent, large shareholder perspective to the board to revive GrafTech's market leadership.
April 03, 2024 | 7:54 pm
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Nilesh Undavia's campaign for a board seat at GrafTech International Ltd. (NYSE:EAF) highlights significant shareholder value destruction under the current board, criticizing its decision-making and excessive compensation despite poor performance.
The public criticism and call for board changes by a significant shareholder could lead to increased investor scrutiny and potential support for Undavia's proposals. This might result in positive sentiment among investors hoping for a turnaround in the company's governance and performance, potentially impacting the stock price positively in the short term.
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IMPORTANCE 90
RELEVANCE 100