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 The activist fund, which owns a 5.2 percent stake in the
manufacturing and industrial company, submitted a filing to the U.S.
Securities and Exchange Commission, making official what it had told
Eastern's board last month. It is asking shareholders to put its own
chief executive officer, James Mitarotonda, and medical device
manufacturer Misonix Inc CEO Michael McManus on the board.
Reacting to Barington's public prodding to improve its financial
performance and share price, Eastern told Mitarotonda in February
that it was ready to invite one newcomer onto the board, expanding
the size to six people from five. Both Mitarotonda and McManus were
interviewed for the job.
Eastern did not return a call seeking comment.
Barington is sticking by its plan to add not one but two new members
to a board that has not had a new director since 1993. The hedge
fund said in the filing that it hired MacKenzie Partners Inc as its
proxy solicitor.
Mitarotonda has a long list of complaints for Eastern and was
especially irritated that the board took only 12 days to dismiss an
offer from rival Synalloy Corp, the filing said.
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Barington is a one of a handful of hedge funds that are taking more
active roles at companies by demanding board seats, asking for share
buybacks and suggesting spinoffs or mergers. The New York-based fund
made headlines when it was among the first to call for Olive Garden
parent Darden Restaurants Inc to split itself apart.
Shares of Eastern closed down 0.7 percent at $19.52.
(Reporting by Svea Herbst-Bayliss)
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