Biovail proxy fight gathers steam
Biovail 3-month TSX chart
Drug company Biovail Corp. fired back Tuesday at the slate of directors proposed by former chair Eugene Melnyk, and told shareholders to take no action yet in the boardroom fight.
In a release, Biovail urged its shareholders to hold off casting votes in favour of Melnyk.
A showdown will take place at the company's annual meeting on June 25 in Toronto.
Under Melnyk's plan for a new board, which was unveiled Monday, he also proposed the appointment of Bruce Brydon as CEO. Brydon previously held that post from 1995 to 2001.
Melnyk had said he was unhappy with the direction and management of the company, of which he retains an 11 per cent stake
Biovail said it will release its full response to Melnyk's proposal "in due course."
"Essentially, shareholders face a choice between returning the company to the influence of Eugene Melnyk or moving forward with an expanded independent board, a strong management team, reduced litigation risk and a viable long-term strategy for delivering value," said current Biovail CEO Douglas Squires.
Last month, Biovail announced major changes to its business, including the closure of two offshore production facilities and a shift in its research focus.
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