Sensient Technologies Corp. on Monday filed proxy materials with
the Securities and Exchange Commission in an effort to prevent a
board takeover by FrontFour Master Fund Ltd.
The proxy materials urge shareholders to vote for its current
members, rather than the four members nominated by FrontFour.
The Milwaukee-based company that makes flavorings, fragrances
and colors wrote the letter because it is seeking to keep all
nine of its current board members. The election will be held
April 24 at its annual meeting.
FrontFour Master Fund, a company formed in the Cayman Islands,
holds about 0.7 percent of Sensient’s outstanding shares of
common stock. On Feb. 19, the company sent a letter to
shareholders saying it intended to nominate four people for
election to the board in order to exert more control over the
company. The letter voiced concerns regarding the company’s
operational shortfalls in the flavors and fragrances division.
“Under the direction of our CEO Paul Manning, we are extending a
plan across the company that has already proven successful in
one of our businesses," according to the SEC filing. "Prior to
becoming CEO, Paul led the successful execution of this plan in
our Color Group, which resulted in 15% compound annual growth in
operating profit since 2009 and 2013 operating margins of 21% –
the highest level in 10 years.”