Activist Hedge Fund Flexes Its Muscles At Nautilus

Jan 2 2008 | 12:39pm ET

New York-based hedge fund Sherborne Investors has won its proxy battle for control of fitness equipment maker Nautilus.

The Vancouver, Wash.-based concern, which markets the Bowflex line of exercise machines, among others, acknowledged that Sherborne’s four candidates had won election to its seven-member board, on Dec. 18. Among those failing to win reelection were Chairman and CEO Robert Falcone.

The new board members elected Sherborne managing partner Edward Bramson chairman. But in spite of their victory, and the vitriol generated by the proxy battle, the new Bramson-led board did not dismiss Falcone from his positions as president and CEO.

“We appreciate the support of our fellow shareholders and look forward to working with the new board and management to implement an effective strategy at Nautilus to return it to profitability and establish a platform for future growth,” Bramson said in a statement.

Nautilus would not say how large the Sherborne nominees’ margin of victory was.

In addition to Bramson, Sherborne’s Gerard Eastman, former ICOS Corp. CFO Michael Stein and former PetsHotel general manager Richard Horn joined the company’s board.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Looking for a way to keep warm during the cold weather or rather alleviate your cold while under the weather?