Chemed shareholder seeks board representation

By Lisa Kerner

Charlotte, N.C., March 20 - Chemed Corp. confirmed that it received notice from MMI Investments, LP that the shareholder plans to nominate a slate of five director candidates to stand for election at the company's 2009 annual meeting on May 18.

As previously reported, MMI Investments said it believes a tax-free spinoff of the Cincinnati-based company's Roto-Rooter and Vistas businesses could boost Chemed's per-share price.

The benefits of a tax-free spinoff, according to MMI, include separate access to equity and debt capital markets and an increased management focus on each of the businesses' needs.

"While a separation could create substantial shareholder value in a different market environment, we firmly believe that, given the present state of the equity and debt markets, implementing a separation could impair value for our stockholders and now is not the right time to implement this strategy," Chemed said.

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