Micrel continues its attack on Obrem ahead of May 20 annual meeting

By Lisa Kerner

Charlotte, N.C., May 12 - Micrel, Inc. continued to turn up the heat in its proxy battle with Obrem Capital Management, LLC, sending yet another letter to its shareholders urging them to reject the investor's proposals and director nominees at the May 20 annual meeting.

The company cited a May 6 report by Glass Lewis & Co. recommending shareholders vote against Obrem's proposals to replace Micrel's full board, expand the board by one seat and insert Obrem's "inexperienced and unqualified nominees," a Micrel news release stated.

In its May 12 letter, Micrel said it is successfully executing a strategic plan focused on margin improvement, earnings growth and returning capital to shareholders.

The company sent similar letters to shareholders on May 1 and April 25.

Two shareholders together owning 30% of Micrel, Warren H. Muller and founder and chief executive officer Raymond D. Zinn, intend to vote against Obrem's proposals and nominees, Micrel noted previously.

Micrel said the hedge fund, which has owned Micrel stock for approximately two months, is trying to oust the company's current board and force a sale of the company, it was previously reported.

On May 5, Obrem asked Micrel shareholders to hold the company's board of directors accountable for the company's "decade-long underperformance" by electing Obrem's director nominees.

Obrem presented questions it believes shareholders need to ask Micrel's board and management about the company's commitment to reviewing proposals, its operational plan and the board.

On April 26, Obrem urged Micrel shareholders to elect its director nominees:

• Bill Bradford, a co-founder and general partner of Saguaro Ventures;

• Keith R. Gollust, a founding partner of Gollust, Tierney, and Oliver, a private investment firm;

• Eric Gomberg, a senior investment analyst at Obrem Capital Management;

• Ben Goren, a principal at GCG Capital;

• Keith M. Kolerus, former chairman of the board of ACI Electronics; and

• Andrew Rechtschaffen, founder and managing member of Obrem Capital Management.

Micrel develops and manufactures high-performance analog power integrated circuits (ICs), mixed-signal ICs and digital ICs. The company is based in San Jose, Calif.

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