Online Resources Corp. has urged its shareholders not to vote for a slate of directors sponsored by a dissident shareholder.
The hedge fund Tennenbaum Capital Partners LLC, which according to a regulatory filing owns 21.9% of the Chantilly, Va., bank technology vendor's common stock, nominated three directors for seats on the nine-member board. Online Resources' annual shareholders meeting is May 6.
Its nominees are John Dorman, a former president and chief executive of Digital Insight Corp. (now a unit of Intuit Inc.) that, like Online Resources, offered a hosted Internet banking service; Edward D. Horowitz, a former e-banking executive at Citigroup Inc.; and Bruce A. Jaffe, a former executive at Microsoft Corp.
Tennenbaum, of Santa Monica, Calif., disclosed its stake in Online Resources on Feb. 5 and followed up last week with a press release announcing its intention to seek the board seats. Among other things, Tennenbaum urged the Online Resources board to consider "strategic alternatives" and to make what it called improvements in corporate governance, including splitting the chairman and chief executive officer roles, both now held by Matthew P. Lawlor, a co-founder of the company.
Online Resources issued a press release late Thursday to tell shareholders that it will soon issue its own proxy statement.