Another shareholder adds pressure to remove Kintera's CEO

By Lisa Kerner

Charlotte, N.C., Feb. 7 - Coghill Capital Management, LLC supports replacing Kintera, Inc.'s chief executive officer Harry Gruber, according to a schedule 13D filed with the Securities and Exchange Commission on Wednesday.

"While we fully acknowledge Harry's significant contribution to the development of Kintera, thus far we believe that he is not the ideal manager to continue at the helm of the company," Coghill president Clint Coghill said in a letter to Kintera included in the SEC filing.

Coghill manages a fund that owns 3.9 million, or 9.9%, of Kintera common stock.

The shareholder said Gruber's track record of managing the company demonstrates "an ongoing inability to achieve business goals and objectives resulting in destruction of shareholder value, as well as the squandering of a considerable market opportunity for which Kintera's solution is well suited."

In addition, since Gruber is both chairman and CEO, Coghill is concerned that Gruber "has the ability to exert undue influence over strategic and operational decisions without meaningful checks and balances."

A group of Kintera shareholders with a 5.1% stake in the company and led by BC Advisors voiced similar concerns over Gruber's performance in a schedule 13D filed with the SEC on Tuesday.

Kintera is a San Diego-based content management software developer.

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