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Seidman says Massbank CEO is 'unprofessional,' asks board to consider sale or Dutch auction
By Lisa Kerner
Charlotte, N.C., Aug. 7 - Massbank Corp. investor Lawrence B. Seidman referred to company chairman, president and chief executive officer Gerard H. Brandi's recent behavior as "boorish" and "unprofessional." Seidman said he was insulted by Brandi when he called the CEO to discuss strategic plans for transforming the company's balance sheet, improving earnings and returning capital to shareholders.
Seidman made his comments in a letter to Brandi, which was included in a schedule 13D filing with the Securities and Exchange Commission.
"In my 23 years in the banking industry, I have met hundreds of senior executives, many of whom I respect and admire. You are not one of those people. Without question, you are the rudest, most ridiculously conceited executive I have ever encountered. Looking at the direction you have taken MASB, your bravado is comical," Seidman wrote.
Seidman ended by reminding the board of its fiduciary duty and asking that Massbank's board consider the following:
• Accelerating a share purchase program, including considering a possible Dutch auction;
• A new management team "capable of making proper loans"; and
• A sale of the institution.
On July 27, Seidman requested that the size of Massbank's board be increased by one member and that he, or another acceptable person independent of Massbank's management, be added to the board. If denied, Seidman said he would seek to elect three directors at the company's next annual meeting by way of a proxy contest.
Seidman's shares represent a 5.83% stake in the Reading, Mass., bank holding company.
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