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‘Concerned’ CTG shareholder seeks joint effort with other investors

June 22, 2023

A person identifying as a “concerned shareholder” called for investors to collaborate at IT staffing and solutions firm Computer Task Group Inc. (NASDAQ: CTG).

The shareholder, Jerald Hammann of Minneapolis, said in an SEC filing that concerned CTG shareholders should team up in order to increase the effectiveness of their actions.

“Individual shareholders often lack the voting power to effect meaningful change at shareholder meetings,” the filing states. “However, through collaboration, the opportunity exists for shareholders to discuss their investment objectives and assert a proactive posture in addressing board nominations and corporate governance proposals.”

CTG is open to communications, the company said in a statement to SIA.

“CTG welcomes open communications with shareholders and values constructive input toward the goal of enhancing value,” said John Laubacker, executive VP, CFO and treasurer at CTG. “We are successfully executing our strategy to transform the business into a pure-play IT solutions provider and will continue to take action for the benefit of our company and all CTG shareholders.”

In an emailed statement to SIA, Hammann, gave more details.

“This is not part of an effort to attempt a hostile takeover of CTG or otherwise put in an unsolicited bid for the company,” Hammann said in his statement. “Through discussions with these larger and/or knowledgeable shareholders, I intend to begin a dialogue with the directors of the company around identified areas for improvement to understand whether there is a collaborative path forward between the directors of the company and its shareholder base.” 

He said he intended to then work with the company on possibly implementing some shareholder objectives.

“If there is not a collaborative path forward, I would work to more proactively pursue change relative to the company, up to and including potentially engaging in a proxy contest against one or more directors of the company,” Hammann said in the emailed statement.

Hammann said he has worked with shareholders at other firms in this manner. Sometimes successfully collaborating the the firm, sometimes without the cooperation of the company.

Story has been updated with new information.