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InfoUSA Directors Survive Dolphin Attack
Database company and ORC owner InfoUSA has survived an attempt to unseat three of its directors at last week's AGM; but continues to attract heated criticism from minor shareholders including Dolphin Limited Partnership and Cardinal Capital, who last month filed a mismanagement lawsuit.
infoUSA bought top 20 MR firm Opinion Research Corporation in December (www.mrweb.com/drno/news6215.htm ). At last week's AGM, company-backed Bill Fairfield, Anshoo Gupta and Elliot Kaplan were re-elected to three-year terms, with 62%, 62% and 58% of the vote, respectively. Dolphin had urged shareholders to withhold votes for the directors and to defeat a proposed equity incentive plan, which was also passed. However, with CEO Vinod (Vin) Gupta himself owning around 42% of the company, actual defeat had been unlikely.
The antagonism between Vin Gupta and Dolphin's Senior MD Donald Netter goes back two years to Gupta's attempt to buy out the company he founded and take it private, at which point Netter attempted to have him removed from its head. Netter claimed Gupta tried to buy the company on the cheap by conspiring to drive down the price of the stock before making his offer, while Gupta maintains that it was Netter whose expectations of cashing in on the low price and subsequent rise were thwarted.
In a press release last week, Dolphin suggested that well over two thirds of 'unaffiliated' shareholders had opposed the company's intentions and said the infoUSA Board had 'showed their contempt for shareholders at the meeting, which lasted just five minutes.'
Gupta has retorted with a strong attack on Dolphin, saying the firm 'typifies what's wrong with Wall Street these days' and accusing Dolphin of looking only for a quick profit. He also said in a statement: 'We find it particularly gratifying that the shareholders rejected Dolphin Limited Partnership's campaign against the company.'
The law suit alleges misuse of funds, questioning millions of dollars paid in consultancy fees and donations to the family and causes of Bill and Hillary Clinton; as well as alleged 'improper payments' to Gupta for the purchase of cars, jets, houses and a yacht.
Hedge fund firm Dolphin holds 2 million shares or 3.6% of infoUSA, which is on the net at www.infousa.com .
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