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Shareholder group against Schweitzer-Mauduit's board nominations, stock plan
By Lisa Kerner
Charlotte, N.C., April 4 - Schweitzer-Mauduit International, Inc. investors led by VN Capital Fund I, LP, VN Capital Management, LLC, Joinville Capital Management, LLC and their principals James T. Vanasek and Patrick Donnell Noone said they are opposed to the election of Claire L. Arnold and Robert F. McCullough to the company's board of directors.
The investors also oppose the adoption of the company's restricted stock plan, according to a March 31 letter to Schweitzer-Mauduit chairman and chief executive officer Wayne H. Deitrich. The letter was included in a VN Capital news release.
In opposing the election and the stock plan, VN Capital cited Schweitzer-Mauduit's "ill-advised" capital allocation, a "broken" fixed price/variable cost business model and executive pay packages not based on company performance.
According to the investors, Schweitzer-Mauduit barely made a profit over the last three years.
"We believe that other shareholders share our view and encourage you to see a negative vote as a mandate from shareholders to change course," VN Capital's letter said.
VN Capital owns 195,000 shares, or 1.3%, of Schweitzer-Mauduit.
The company, located in Alpharetta, Ga., manufactures and sells paper and reconstituted tobacco products to the tobacco industry.
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