ATS Responds to Hedge Funds

Date: Monday, September 10, 2007
Author: HFN Daily Report

ATS Automation Tooling Systems is urging stockholders not to vote in favor of a rival board slate put forward by two dissident hedge funds.

Goodwood and Mason Capital have nominated seven new board members, four of whom are affiliated with the firms. If elected, they have promised to oust Ron Jutras, the current chief executive officer of the Cambridge, Ontario-based company.

In a letter to shareholders on Friday, ATS called the proxy challenge unwarranted, unnecessary and counter to the best interests of shareholders. The company said the funds offer no new ideas and are only disrupting the execution of its strategic plan. ATS is currently in the process of eliminating jobs in North America and opening new facilities in Asia.

ATS has had regular discussions with Goodwood and Mason over the past several months. In the past, the funds clashed with ATS over its solar energy division Photowatt, leading the company to withdraw an initial public offering of the unit after the fund firms cancelled large orders to purchase shares.

The annual general meeting for ATS will take place on Sept. 13. Together, Goodwood and Mason own a combined 21.25% of the company.