AMG Investments wants LNB Bancorp to schedule special meeting of stockholders

By Lisa Kerner

Charlotte, N.C., Jan. 10 - AMG Investments, LC demanded that LNB Bancorp Inc. immediately hold a special meeting of stockholders, since it failed to do so in response to AMG's previous request.

"We believe LNB's delaying tactics and refusal to hold the meeting are in clear violation of Ohio law. Your shareholders have spoken, and we will take all necessary action to enforce their rights," AMG said in a Jan. 9 letter to the company's corporate secretary.

The letter was included in a schedule 13D filing with the Securities and Exchange Commission.

In November 2007, AMG solicited the support of LNB's shareholders to call a special meeting for the purpose of considering several proposals, "including the removal and replacement of certain members of LNB's current board of directors," according to the filing.

As required by Ohio law, the holders of more than 25% of LNB's outstanding shares requested the meeting.

On Jan. 7, AMG asked LNB's chief financial officer to make available to its shareholders a number of items related to the company's loans, including range of and average interest rates, as well as range and average term of the loans and length of maturity.

AMG said it is LNB's largest shareholder, beneficially owning 600,000 shares, or 6.2%, of the Lorain, Ohio-based company's outstanding stock.

LNB is the holding company for the Lorain National Bank.

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