Irenic sends letter to Teleflex board of directors

Irenic Capital Management, one of the largest shareholders of Teleflex (TFX), sent a letter to the Company’s Board of Directors regarding its refusal to engage with potential acquirors, despite receiving interest from multiple credible parties. The letter also urges the Board to immediately take a more constructive and responsible approach to evaluating strategic alternatives. Irenic wrote, “We are writing to you following our conversation with Dr. Stephen Klasko, Chairman of the Board of Directors, last week, during which Dr. Klasko indicated that the Board has directed the Company’s advisors to refuse approaches from potential acquirors of Teleflex. He made clear to us that, in his view, it did not make sense to even have a conversation with interested parties at this point – regardless of how much such parties might be willing to pay for Teleflex. As we conveyed on the call and in our subsequent private communication with the Board, we firmly believe that posture is unreasonable and irresponsible. Over the past five years, Teleflex has delivered a total shareholder return of negative 73% – a level of sustained value destruction that demands, at a minimum, openness to evaluating credible opportunities to maximize shareholder value. At the same time, the Company is operating without a permanent Chief Executive Officer because the Board failed at its primary job – properly planning for succession… In our view, Teleflex requires meaningful change at the Board level – most notably, a new Chair – as well as the engagement of independent advisors capable of supporting an objective evaluation of strategic alternatives. We are aware of multiple interested parties, and the Board’s continued unwillingness to engage is not tenable. It is time – well past time – for the Board to take a more constructive and responsible approach and begin engaging with credible acquirors. “