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INTUIT AVOIDS A FIGHT?

There's got to be more going on with Intuit's announcement that will nominate David H. Batchelder to its board of directors to replace former CEO Stephen Bennett, who chose not to stand for re-election. The press release was a simple announcement, but the documents filed with the SEC show it wasn't that simple. Batchelder is a principal with Relational Investors, an investment firm which does not show up on public documents as a major shareholder in Intuit.

 

However, in exchange for the decision to nominate Batchelder, Relational agreed to withdraw a slate of three candidates it proposed in a letter on September 28 and it also agreed to a standstill provision that it can't seek to acquire more than 9.9 percent of the voting stock. Relational was founded by Ralph Whitworth, described by one publication as picking fights "with companies where he considers boards are in thrall to their chief executive and are making poor decisions, be it on executive compensation, acquisitions or corporate malfeasance. By entering the fray and forcing companies to change their ways, often from the inside as a board member," The firm's own Web site describes Whitworth as an expert on corporate governance. I don't know if that applies here, but it's an interesting perspective. I asked Intuit if there's a more detailed explanation available. I don't expect one. However, public companies don't just give up board seats to be nice and investment groups don't just put up board candidates on whims. Something very heavy duty went one here.

 

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