In an open letter, investor Donerail Group sharply criticizes the planned merger of 3D printer manufacturer Stratasys with Desktop Metal. Donerail holds about 2.3 percent of Stratasys shares.
According to Donerail, the negative recommendation from influential shareholder advisor ISS speaks against the competence of the Stratasys board of directors. ISS had previously stated that an alternative purchase offer from 3D Systems appeared to bring more value to shareholders.
Donerail accuses the board of neglecting shareholder interests. It said it had rejected offers with high premiums and instead pursued questionable transactions. It also said the desktop metal business had little value.
Stratasys had announced in May that it would completely acquire Desktop Metal through a share swap. Donerail, like other major shareholders, plans to vote against it at the Sept. 28 annual meeting.
The open letter underscores opposition to the merger, which strategy experts consider risky. Donerail is calling for a renewal of the board of directors, which it accuses of failure. The pressure on Stratasys thus continues to grow.
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