Bel Fuse Objects To Proposals By Power-One To Issue New Stock
Bel Fuse Inc. has sent a letter to Power-One Inc. stating that it could propose a slate of directors for election to Power-One’s board of directors if Power One does not agree to the sale of its dc-dc business, and discontinue the issuance of more shares.
Bel Fuse, whose Bel Ventures Inc. unit owns about 8.4% of Power-One’s outstanding stock, stated that it did not think issuing new shares at current prices would help Power-One solve its problems. Bel Fuse also complained that Power-One might have to issue new stock "at a depressed price" to deal with its capital requirements.
Bel Fuse had made an offer to acquire Power-One’s dc-dc power converter business in March. Bel Fuse claims that a letter it sent to Power-One in June was ignored, and the latest letter continues to suggest that Power-One divest its dc-dc converters division to eliminate a substantial portion of its debt. Bel Fuse also advises Power-One to focus on its ac-dc power supplies sector and developing its renewable energy inverters business.
Bel Fuse said it was interested in buying the dc-dc converters unit but remained focused on maximizing Power-One’s stock price. The company cautioned that if its suggestions were not heeded it would potentially submit nominees to Power-One’s board of directors at its next annual meeting.