PL Capital: CFS Bancorp, Inc's. Abusive Actions Designed to Further Entrench Directors
03 Agosto 2009 - 10:03AM
PR Newswire (US)
NAPERVILLE, Ill., Aug. 3 /PRNewswire/ -- On July 31, 2009 CFS
Bancorp, Inc. (NASDAQ:CITZ) (the Company) issued a Form 8-K
containing several amendments to the Company's Bylaws, effective as
of July 27, 2009. Among other things, the revised Bylaws removed
the long standing mandatory retirement provision, which provided
that no person was eligible for nomination or election as a
Director of CFS Bancorp if that person attained (or would attain)
age 70 in the same calendar year as such nomination or election.
Under the amended Bylaws, there is no longer a mandatory retirement
age or other mandatory retirement provision. "No rationale was
given for why this change was needed, but I suspect it has
everything to do with the Board's attempt to further entrench
themselves in the face of PL Capital's recently announced intent to
run a proxy contest at the 2010 Annual Meeting," stated PL Capital
principal Richard Lashley. He added, "the amended Bylaws
specifically benefits two directors, Chairman and CEO Thomas
Prisby, and Director Frank Lester, both of whom would have been
required to retire from the Board in the next few years under the
previous Bylaws." "I would have expected that the Board would be
focused on proactive changes, not entrenchment tactics, given CFS
Bancorp financial results and operating performance, which have
been abysmal," noted PL Capital principal John Palmer. PL Capital
and its affiliates own approximately 9.5% of CFS Bancorp and are
CFS Bancorp's largest outside shareholder. Contact: John Palmer of
PL Capital LLC at 630-848-1340 or or Richard Lashley of PL Capital
LLC at 973-360-1666 or Important Information This press release is
not a solicitation of a proxy from any security holder of CFS
Bancorp, Inc. PL Capital, LLC and its affiliates (the "PL Capital
Group") may elect to nominate and file proxy materials to enable
the PL Capital Group to solicit votes for the election of one or
both of John Palmer and Richard Lashley as members of the Board of
Directors of CFS Bancorp (the "PL Capital Nominees). If the PL
Capital Group nominates either of these individuals to serve as
directors of CFS Bancorp, the PL Capital Group will send a
definitive proxy statement, WHITE proxy card and related proxy
materials to shareholders of CFS Bancorp seeking their support of
the PL Capital Nominees at CFS Bancorp's 2010 Annual Meeting of
Shareholders. Shareholders are urged to read the definitive proxy
statement and WHITE proxy card when, and if, they become available,
because they will contain important information about the PL
Capital Group, the PL Capital Nominees, CFS Bancorp and related
matters. Shareholders may obtain a free copy of the definitive
proxy statement and WHITE proxy card (when, and if, available) and
other documents filed by the PL Capital Group with the Securities
and Exchange Commission ("SEC") at the SEC's web site at
www.sec.gov. The definitive proxy statement (when, and if,
available) and other related SEC documents filed by the PL Capital
Group with the SEC may also be obtained free of charge from the PL
Capital Group. Participants in Solicitation The PL Capital Group
currently consists of the following persons who, if the PL Capital
Group elects to nominate the PL Capital Nominees, will be
participants in the solicitation from CFS Bancorp, Inc.'s
shareholders of proxies in favor of the PL Capital Nominees: PL
Capital, LLC; Goodbody/PL Capital, LLC; Financial Edge Fund, L.P.;
Financial Edge-Strategic Fund, L.P.; PL Capital/Focused Fund, L.P.;
Goodbody/PL Capital, L.P.; PL Capital Advisors, LLC; Richard J.
Lashley; Beth Lashley; John W. Palmer; Irving A. Smokler and Red
Rose Trading Estonia OU. Such participants may have interests in
the solicitation, including as a result of holding shares of CFS
Bancorp common stock. Information regarding the participants and
their interests will be contained in the definitive proxy statement
(when, and if, available) filed by PL Capital Group with the SEC in
connection with CFS Bancorp's 2010 Annual Meeting of Shareholders.
DATASOURCE: PL Capital LLC CONTACT: John Palmer of PL Capital LLC,
+1-630-848-1340 or , or Richard Lashley of PL Capital LLC,
+1-973-360-1666 or Web Site: http://www.plcapitalllc.com/
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