A dissident shareholder's proposal to sell Eagle Bancshares of Tucker, Ga., will be included in the company's proxy statement, the dissident said Monday.
That means there will be a vote on the future of the $1.1 billion-asset company at its annual meeting Aug. 27.
In the resolution, J.C. Serrato Jr., a doctor in Columbus, Ga., said that "in the dynamic economy enjoyed in recent years in the Southeast, and, particularly, in the Atlanta area, management has proven unable to increase the earnings of our company in a meaningful way." For that reason, he recommends the board "take steps to achieve a sale, merger, or other acquisition of the company."
This is not the first time Dr. Serrato, who owns 4.79% of Eagle's outstanding shares, has clashed with management. In 1993 he introduced his own slate of directors at an annual meeting. That slate was defeated.
The next year he proposed eliminating Eagle's poison pill; that proposal was also shot down.
Eagle's board, in recommending a vote against Dr. Serrato's proposal, said in the proxy that he has "consistently underestimated" the company's value.
"Twice before he has told shareholders to sell out at prices lower than the current value of the company's stock," the proxy states. "Each time in the past that you have supported management's plan, you have succeeded in building your wealth."