A. Schulman little changed on proxy fight; Syms wants privacy, stock falls; Breeden ups stake in Zale, stock drops

By Evan Weinberger

New York, Jan. 3 - Joseph M. Gingo, the new chief executive officer at A. Schulman Inc., announced his 100-day, six-point plan Thursday. But the specter of an ugly proxy fight with Ramius Capital Group LLC continued to hang over the company's collective heads.

Gingo said that A. Schulman, an Akron, Ohio-based plastic resins and compounds manufacturer, will become a leaner, meaner company in the first 100 days of 2008.

His plan calls for the following:

• More efficient and effective use of A. Schulman's North American manufacturing facilities;

• A focus on value-added products to drive growth in the polybatch and engineered compounds segments;

• Reassessment of A. Schulman's North American automotive business to emphasize profitable areas;

• Suspension of further capital expenditures on the company's Invision PVC-free polyolefin compounds until the marketing strategy has been refined;

• Identification of additional efficiencies in the sales and administrative structure of European operations; and

• Ensuring that the best leadership team is in place to execute the company's strategy.

"While an A. Schulman board member, I was an active adviser to the company on its strategic direction; however, in my new role as CEO, I am excited to be taking the operational reigns and driving forward our strategy with a real sense of urgency," Gingo said in a statement released by the company.

Gingo addressed the proxy fight with Ramius, which has been trying to replace A. Schulman board members James Karman and Gingo with its own nominees at the Jan. 10 annual meeting.

Gingo said that A. Schulman wants to keep those members in their seats and that the company had reached out to Ramius to end the fight.

Ramius, apparently, was in no mood to negotiate and rejected the offer.

"Ramius does not have the interests of all stockholders at heart, evidenced by the fact that they continue to pursue a protracted and expensive proxy fight with no meaningful benefit to all stockholders, while ignoring the substantive measures taken by the company to enhance profitability, improve governance and deliver stockholder value," lead independent director Will Holland said in the statement.

A. Schulman has set up an independent committee to explore its strategic options, including the possible sale of the company.

Stock in A. Schulman (Nasdaq: SHLM) was little moved on the plan, gaining 8 cents, or 0.38%, to close at $21.09.

Meanwhile, stock markets did little of note Thursday.

The Dow Jones Industrial Average picked up 12.76 points, or 0.10%, to close at 13,056.72.

The Nasdaq lost 6.95 points, or 0.27%, for a 2,602.68 close.

And the Standard & Poor's 500 probably summed up the day best. It took a bagel, ending the day right where it began at 1,447.16.

Syms falls on investor revolt

Secaucus, N.J.-based discount clothing retailer Syms Corp. announced plans to go private Wednesday, the same day it filed the necessary forms with the Securities and Exchange Commission.

"We believe the costs associated with being a SEC-registered company which is listed on the New York Stock Exchange outweigh the benefits," Marcy Syms, the company's CEO, said in a statement. "Moreover, we expect that trading on the Pink Sheets will continue to provide a platform and liquidity to our shareholders."

Apparently not all of the shareholders agree. A group of holders of Syms stock, led by Barington Capital Group LP and Esopus Creek Advisors LLC, sent a letter to the Syms board of directors urging them to reconsider the move. The investor group controls around 9.7% of Syms' stock.

Syms stock (NYSE: SYM) tanked on the turmoil Thursday, losing $1.20, or 7.81%, to close at $14.17.

Zale down on Breeden infusion

Zale Corp. saw its stock take a tumble Thursday, just a day after Breeden Capital Management LLC announced that it had upped its stake in the Irving, Texas-based jewelry retailer.

Breeden, based in Greenwich, Conn., and controlled by former SEC chairman Richard Breeden, upped its stake to 13.3% of Zale from 7.7%, according to an SEC filing Wednesday.

But Breeden's confidence in Zale was no match for the overall sour mood toward retailers, after a slower-than-normal holiday shopping season and rising oil prices fueled recession fears.

Zale stock (NYSE: ZLC) fell 92 cents, or 6.02%, to close at $14.35.

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