Tecumseh denies shareholder, won't eliminate class A protection provision or terminate rights plan

By Lisa Kerner

Charlotte, N.C., April 28 - Tecumseh Products Co. reiterated its view that the Herrick Foundation's proposal concerning the elimination of the class A protection provision in the company's 2008 proxy statement is not in the best interests of Tecumseh and its shareholders.

According to the an April 25 letter to the Herrick Foundation, Tecumseh's governance and nominating committee also determined not to recommend that the board redeem or terminate the rights agreements or take action to avoid application of the Michigan Anti-Takeover Provisions. The letter was included in a form 8-K filing with the Securities and Exchange Commission.

Herrick had made its requests in a March 10 letter to Tecumseh.

Tecumseh's board did authorize the governance committee to consider potential alternatives that could facilitate Herrick's desire to sell its class A and class B shares "in a manner that is in the best interests of the company and all of its shareholders."

The move is in response to Herrick's request that the board form a committee to consider potential transactions that would allow the foundation to liquidate its position in Tecumseh.

Tecumseh, based in Tecumseh, Mich., manufactures compressor and other products.

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