Bank Mutual in Milwaukee is facing a proxy battle with the activist investor Clover Partners.

Clover managing director Johnny Guerry sent the $2.5 billion-asset company a letter dated Jan. 21 stating that the Dallas private-equity firm plans to nominate one or more individuals to oppose the bank's slate of board nominees.

The letter did not specify why Clover has decided to run nominees against Bank Mutual's slate. Clover Partners, which consists of MHC Mutual Conversion Fund LP, Clover Partners LP, Clover Investments LLC and Guerry, holds a 4.1% stake in Bank Mutual.

Last month Clover Partners sent a letter to Financial Institutions in Warsaw, N.Y., pressuring the $3.4 billion-asset company to explore a sale.

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