Orbcomm board nominees receive support of third proxy advisory firm

By Lisa Kerner

Charlotte, N.C., April 30 - Proxy Governance, Inc. is recommending that Orbcomm Inc. shareholders vote for both of the company's nominees - Jerome Eisenberg and Marco Fuchs - and reject the dissident slate at the annual meeting on May 6, Orbcomm announced on Thursday.

As previously reported, proxy advisory firms RiskMetrics Group/ISS and Glass, Lewis & Co. made similar recommendations.

A dissident shareholder group is nominating Steven Chrust and Michael Miron for election to Orbcomm's board.

Miron is the founder and managing director of MM & Co., an independent consultant/adviser to technology-based businesses.

Chrust is the founder and a senior principal of Centripetal Capital Partners, LLC, a private equity investment firm.

According to Orbcomm, Proxy Governance's Tuesday reports states, "Of the two core strategies for making a million dollars - start with a dollar, or start with a billion dollars - this may be the first proxy contest ever launched in support of the second."

Proxy Governance also noted the dissident's self interest in the proposal to raise $25 million in capital. "There is clearly no need to raise additional cash now, and no reason to believe the company would be unable to raise it in the future, if things came down to it," Proxy Governance said in its report.

Orbcomm, a Fort Lee, N.J., satellite data communications company, has an untapped $20 million cushion of vendor financing as well as "direct access to the capital markets on efficient, competitive terms," according to Proxy Governance.

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