Baltimore Bancorp Dissidents: We Won
Dissident shareholders of Baltimore Bancorp said the independent vote counter for their recent proxy fight has concluded that the group replaced six of the bank's 18 directors with its own slate and added 10 of their representatives to the board by increasing its size to 28.
Jerome Baroch, spokesman for Baltimore Bancorp, said it is challenging both votes in court. A federal district court judge is expected to rule within a week.
Dissatisfaction on Both Sides
The ousting of six directors is being challenged on the ground that the dissidents' proxy solicitation was misleading. The board expansion is being challenged on the ground that the dissidents need a larger majority than they received, Mr. Baroch said.
The dissidents are dissatisfied with the way current management has been running the bank and has mounted the proxy contest in order to oust them. Last summer, management turned down a $17 a share offer from First Maryland Corp. Since then, the stock has fallen as low as $5 a share, which has angered shareholders. The stock is now at $8.75 a share.