MDS reaches agreement with Obrem; investor will not seek board representation

By Lisa Kerner

Charlotte, N.C., Nov. 20 - Investor Obrem Capital Management, LLC agreed to refrain from actions that would lead to its control of MDS Inc., according to a form 6-K filed with the Securities and Exchange Commission.

Obrem will not seek to call a meeting of or change MDS' board of directors nor will it seek representation on the board.

In addition, Obrem agreed not to seek to modify MDS' articles or bylaws, the filing said.

In October, Obrem urged the Toronto life sciences company's board to hire one or more investment banking firms to help the company evaluate strategic alternatives, including the sale of individual business units.

The investor suggested the sale of the legacy Sciex business, the molecular devices business and the pieces of MDS Pharma Services, followed by a spinoff of MDS Nordion.

Obrem said it was prepared to call a special meeting of shareholders with two specific agenda items: the removal of one or more long-standing MDS board members and a shareholder vote on pursuing Obrem's suggested actions, according to a prior news release.

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