CHESTERFIELD, Mo. — Angelica Corp., a provider of healthcare linen management services, says it has been unsuccessful in its attempt to meet the requests of Steel Partners II LP, its largest shareholder.
In response to a Dec. 14 letter from the New York investment partnership, Angelica formed a “special committee” of independent, outside directors and offered to create two new seats for Steel Partners on Angelica's board.
Instead, Steel Partners favors replacing two Angelica directors with two of its own. It holds more than 1.8 million Angelica shares, or 19.9% of its common stock, according to a Dec. 16 filing with the Securities and Exchange Commission.
Angelica has also offered to have Steel Partners “provide it with a set of recommendations on the strategic and operational aspects of the business and the tangible steps it feels will help accelerate the company's progress.”