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Hudson Global Inc. (NASD: HSON), a New York-based professional staffing firm, heads toward a proxy battle as a shareholder’s group proposed two board nominees.
Investment firm Lone Star Value Management LLC, together with its affiliates and the other participants in its solicitation, filed preliminary proxy materials with the U.S. Securities and Exchange Commission in connection with the election of directors to Hudson’s board at the 2014 annual meeting of shareholders. The group, led by Lone Star Value, holds approximately 7.4 percent of the outstanding common stock of Hudson.
Lone Star Value's director nominees are Richard K. Coleman Jr. and Jeffrey E. Eberwein.
Eberwein is the founder and CEO of Old Greenwich, Conn.-based Lone Star Value.
Coleman is president and chief executive officer of Crossroads Systems Inc., a global provider of data archive solutions, where he also serves as a director. He is also founder and president of Rocky Mountain Venture Services, a firm that assists technology companies plan and launch new business ventures and restructuring initiatives.
Lone Star Value stated in its preliminary proxy statement that the current board has overseen prolonged operating and stock price underperformance and further appears to lack a strategically coherent plan or the commitment or ability to tackle the serious issues facing Hudson.
“Lone Star Value is a significant shareholder in Hudson and we are interested in maximizing shareholder value and improving corporate governance at Hudson for the benefit of all shareholders,” said Eberwein. “We are disappointed in the company's continued poor operating and stock price performance.”
According to Eberwein, Hudson’s stock is down 71 percent over the last 10 years.
Shares in Hudson were up 2.21 percent to $3.70 in early afternoon trading and Hudson has a market cap of approximately $119.64 million, according to Yahoo!
Hudson last month reported revenue fell 13.4 percent in the fourth quarter to $159.5 million.