The Forzani Group Ltd./Le Groupe Forzani Ltee

The Forzani Group Ltd./Le Groupe Forzani Ltee

May 26, 2009 23:59 ET

Forzani Group's largest shareholder to support FGL's board nominees

MONTREAL, QUEBEC--(Marketwire - May 26, 2009) - Letko, Brosseau & Associates, the largest shareholder of Forzani Group Ltd. ("FGL"), announced today that it intends to support FGL's nominees for the board of directors.

Letko Brosseau has been a significant shareholder of FGL since 2004 and currently exercises control or direction over portfolios that hold 4,846,135 shares of FGL, equivalent to approximately 15.9% of the shares outstanding. Letko Brosseau intends to vote its shares for FGL's nominees at the company's Annual General Meeting on June 10, 2009.

"As long-term shareholders of FGL, our analysis is that the incumbent board has the level of competence and experience required in order to provide the company with the direction necessary. We also believe the board is acting in the interest of all shareholders," said Peter Letko, Partner, Letko Brosseau. "It is not clear to us that Crescendo or its nominees have a full appreciation of the strategies being pursued by FGL nor do we have confidence that they are prepared to give management the time required to fully implement their plans."

In reaching its decision Letko Brosseau has reviewed FGL's management proxy circular and a dissident proxy circular from Crescendo Partners. Letko Brosseau has also considered other relevant factors, including the performance of FGL, its strategies and growth objectives, recent changes in FGL's senior management, and the current economic environment. In addition it has met representatives of Crescendo Partners to better understand their concerns.

Letko Brosseau & Associates is a Canadian investment manager with offices in Montreal and Toronto. The firm manages assets in excess of $20 billion principally for pension funds, foundations and individuals.

Contact Information

  • Letko, Brosseau & Associates
    Mr. Peter Letko
    (514) 499-1200

    Letko, Brosseau & Associates
    Mr. Daniel Brosseau
    (514) 499-1200