ChinaCast Education Corporation Refutes Latest Sherwood/Fir Tree Statements, Exposes Their Concerted Efforts to Control the Company
ChinaCast Education Corporation (Nasdaq: CAST) today responded to statements made by Ned Sherwood, followed shortly and predictably by Fir Tree, in press releases regarding Ned Sherwood's status as the Fir Tree designee to the Chinacast Board of Directors. In his press release, Ned Sherwood stated that he is not the designee of Fir Tree. Shortly thereafter, Fir Tree issued its own release saying the same thing. It is hard to avoid seeing what is clearly going on.
The Company disagrees with the Sherwood/ Fir Tree position and has made clear to Fir Tree that despite the Nominating Committee's belief that Mr. Sherwood is unsuitable, management will let the shareholders speak for the Company. If the shareholders vote for Mr. Sherwood, then the Company has found him to be suitable. The coordinated efforts of the Sherwood/Fir Tree team, however, highlight a much more important, and time-sensitive, issue.
Over the last few months, as information regarding Mr. Sherwood began to emerge, Fir Tree has continued to support Mr. Sherwood as its designee. Fir Tree disputed the right of our Board to evaluate his suitability. It declined even to entertain making an alternative designation and even advised the Company that it would not engage in negotiations with respect to its designee to the Board unless Mr. Sherwood was a party to such negotiations. The brief negotiations that did occur were conducted through Mr. Sherwood's attorneys, but involved the interests of both Mr. Sherwood and Fir Tree.
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