WASHINGTON, Sept. 19 /PRNewswire-USNewswire/ -- In a letter Friday to ABX Air (NASDAQ:ABXA) Chairman James Carey, the International Brotherhood of Teamsters expressed concerns that the company's poison pill has unduly insulated the Board of Directors from accountability to shareholders and urged the Board to put the company's controversial takeover defense to a vote of shareholders.
"As long-term shareholders of ABX Air, Inc. we are alarmed by recent events at our Company, and concerned that the Board of Directors has not acted objectively to safeguard shareholder value," the letter stated.
Two recent developments triggered concern that the takeover defenses of ABX Air may be detrimental to shareholder value. On July 24, ABX Air rejected an offer to acquire the outstanding shares of the company at a 10 percent premium to market value, without disclosing the fairness opinion of its financial advisors. On August 10, ABX Air announced that it would restate earnings for 2006 and first quarter 2007.
"The poison pill of ABX is the linchpin of a faulty governance structure that leaves investors no choice but to 'vote with their feet,'" the letter concludes. "The risks of this structure have materialized recently in the apparent disregard for minimum standards of disclosure, rejection of an above- market acquisition offer, and financial restatements. We urge you to correct this flawed governance structure by holding a vote of all ABX shareholders to ratify or reject the poison pill."
The International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the U.S. and Canada including 690 ABX Air flight deck crew members.
Source: International Brotherhood of Teamsters