Chemed urges shareholders to reject hedge fund's slate on May 29

By Lisa Kerner

Charlotte, N.C., May 13 - Chemed Corp.'s board of directors once again asked shareholders to vote for its nominees at the company's annual meeting on May 29.

The company made a similar plea to shareholders in April.

"Your board and management strongly believe that MMI Investments, LP, a dissident hedge fund that is soliciting proxies to elect five dissident nominees to your board, threatens the value of your investment," the board said in a letter to shareholders on Wednesday.

According to Cincinnati-based Chemed, MMI's only objective is to separate Chemed's plumbing services company, Roto-Rooter, and its hospice care business, Vitas, a strategy Chemed called "ill-timed" and "limited."

Chemed's slate includes nine of the current members of the board as well as two new independent nominees, Ernest J. Mrozek and Thomas P. Rice.

Mrozek is a former president and vice chairman of ServiceMaster Co. He retired in 2008. Rice, a pharmaceutical industry veteran, was the chief executive officer of Andrx Corp. from 2004 to 2006, Chemed said.

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