Published:
Warren B. Kanders, 5.7% Stockholder, Seeks to Become CEO of Federal Signal Corporation
STAMFORD, Conn., June 30 /PRNewswire/ -- Warren B. Kanders, a 5.7%
stockholder of Federal Signal Corporation (NYSE: FSS), who today filed his
Schedule 13D with the Securities and Exchange Commission, announced that he
had formally submitted his candidacy as Chief Executive Officer of FSS. Mr.
Kanders stated that, although he believes his candidacy has been endorsed by
FSS's investment banker and Ramius Capital Group, LLC, FSS's largest
stockholder, "the implementation of the search process established by the
Search Committee of the FSS Board of Directors was unfairly tainted to
prejudice my candidacy despite my good faith effort to comply with all of the
requirements of the Search Committee."
Mr. Kanders, former CEO and Chairman of the Board of Armor Holdings, Inc.,
a diversified global manufacturer of protective systems and vehicles for the
military and law enforcement agencies, formerly listed on the NYSE before its
sale to BAE Systems plc for approximately $4.5 billion in July, 2007, stated,
"I believe that I can utilize the same skills I used in the success of Armor
Holdings to assist the Board and provide the leadership necessary to enhance
the value of FSS to its stockholders." Mr. Kanders first invested in Armor
Holdings in 1996 when it just emerged from bankruptcy and had approximately
$12 million in revenues and $1 million of EBITDA. During his tenure prior to
the sale, Armor Holdings completed over 30 acquisitions and completed numerous
bank financings and public offerings and private placements of both debt and
equity securities. As former Chairman of the Board and CEO of Armor Holdings,
Mr. Kanders has maintained an interest in the business of FSS for
approximately 10 years.
Acknowledging that although FSS faces many formidable challenges, Mr.
Kanders stated, "I believe that the U.S. is undergoing a renaissance in its
industrial manufacturing base -- due in part to the decline in the U.S. dollar
and in part to increased productivity of the American worker." Mr. Kanders
continued, "At the same time, current dislocations in the credit markets offer
unique opportunities to grow through carefully targeted acquisitions. Under
the right leadership and a vision of what FSS can achieve, I believe these
drivers, working in tandem, can propel FSS shareholder value to higher
levels."
Mr. Kanders further stated, "I have a strong interest personally and
financially in the outcome of the CEO search and the future of FSS. I believe
that FSS has been mismanaged by its Board and executive officers for many
years and that effective leadership could reverse FSS's significant negative
rate of return over the past five years ending December 31, 2007 -- a period
when the Russell 2000, S & P Midcap and the S & P Industrial indices all
increased by more than 200%."
Mr. Kanders concluded, "I reaffirm my interest in the CEO position and
will do everything possible to try to accommodate a meeting inChicago with
those members of the Board whom I have not yet met so that they may evaluate
me in person before the selection process has been concluded. However, if the
Company and the Board determine that I am not the most qualified candidate, as
a holder of more than 5% of the outstanding common stock of the Company, I
intend to closely monitor the performance of the Board and the new CEO in
order to protect and enhance the value of my investment."
SOURCE Warren B. Kanders
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
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