Union Shareholder Asks for Resignation of Penford Corporation Director - Alleges Clayton Act Interlock Violation
14 September 2004 - 1:43AM
PR Newswire (US)
Union Shareholder Asks for Resignation of Penford Corporation
Director - Alleges Clayton Act Interlock Violation WASHINGTON,
Sept. 13 /PRNewswire/ -- The Food and Allied Service Trades
Department, AFL-CIO ("FAST") today released a letter to the Penford
Corp. (NASDAQ:PENX) Chairman Paul H. Hatfield requesting he "demand
the immediate resignation from the Board of Directors of John C.
Hunter III." FAST President Jeffrey Fiedler wrote to Hatfield
stating: "We believe that Mr. Hunter's also serving on the Board of
Directors of Hercules, Inc. (NYSE:HPC), a competitor of Penford,
represents a violation of the Clayton Act. This interlock conflict
is exacerbated by the fact that Hercules has been the exclusive
sales agent for National Starch and Chemical Company's papermaking
starches in the United States, Canada, and Europe since January,
2001. National Starch is yet another competitor of Penford Corp.,
whose flagship industrial starch plant also produces an extensive
array of products for the papermaking industry." Fiedler added that
"Mr. Hunter is not a token director of either Penford or Hercules.
He serves on the audit and executives committees of both companies.
It is difficult in the extreme to imagine Mr. Hunter performing his
fiduciary duties to the shareholders of both companies
simultaneously, even if he took measures to recuse or insulate
himself from action or information involving one company or the
other." "Should Mr. Hunter fail to resign from the Penford Board in
a timely manner," Fiedler said, "we would have no choice but to
file a formal complaint with the Federal Trade Commission, the
agency empowered to enforce the Clayton Act." Copies of the letter
to Hatfield and additional documentary evidence to support its call
for Mr. Hunter's resignation can be found on the FAST website:
http://www.fastaflcio.org/ DATASOURCE: Food and Allied Service
Trades Department, AFL-CIO CONTACT: Jeffrey Fiedler of the Food and
Allied Service Trades Department, AFL-CIO, +1-202-833-8545 Web
site: http://fastaflcio.org/
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