Aerojet investors poised to back CEO in board challenge from exec chair

Aerojet Rocketdyne Holdings

30/06/2022 01:32

By Svea Herbst-Bayliss
    BOSTON, June 29 (Reuters) - Aerojet Rocketdyne  AJRD.N 
shareholders are poised to elect a group of directors headed by
the company's chief executive in a bitterly fought election
where the company's executive chairman also sought control of
the board, people familiar with the matter said on Wednesday.
    Chief executive Eileen Drake and Warren Lichtenstein, the
executive chairman, each nominated eight director candidates for
election to the U.S. rocket maker's board.
    The two have been battling each other since the collapse of
a planned $4.4 billion merger with Lockheed Martin Corp  LMT.N 
earlier this year and both have sued each other in Delaware
court.
    The sources requested anonymity to discuss the likely
outcome of the shareholder vote before an official announcement
by the company. The meeting is being held on Thursday and
investors could still vote or change their votes until the
meeting begins.
    Representatives for the company and for Lichtenstein could
not be reached for comment.
    Lichtenstein, whose Steel Partners and affiliates own more
than 5% of the company, argued operational improvements and
changes to capital allocation were needed to help push up the
company's share price to attract new buyers. He also wanted to
bring back Mark Tucker, a former Aerojet chief operating
officer, as CEO.
    But the major proxy advisory firms, ISS and Glass Lewis, 
recommended investors back Drake's slate and end the current
standoff. ISS argued there is not enough evidence to suggest
Drake must be replaced and that Lichtenstein should not serve on
the board at this point. 
    Glass Lewis praised Drake for having put together a
well-rounded slate of candidates and said the company generally
performed during her tenure.

 (Reporting by Svea Herbst-Bayliss; Editing by Lincoln Feast.)
 ((svea.herbst@thomsonreuters.com; +617 856 4331; Reuters
Messaging: svea.herbst.thomsonreuters.com@reuters.net))