Sandell Gets Its Way With InfoSpace (INSP), But Shares Lag on Guidance
Sandell Asset Management scored a bitter-sweet victory related to its activism in InfoSpace, Inc. (NASDAQ: INSP).
After the close, InfoSpace and Sandell announced an agreement that will avoid a proxy contest. As part of the agreement, InfoSpace incorporated several of Sandell's suggestions including: Sandell's Nick Graziano being appointed to the Board; the Company announced a $6.30/share special dividend; the Board will reauthorize its $100 million share repurchase program; and Mr. Graziano will join a committee to evaluate the Company's strategy to close what the Company believes is a gap between the current price of the Company's shares and their intrinsic value. Also as part of the settlement, Sandell has agreed to abide by certain standstill provisions through February 2008.
InfoSpace also announced Q1 results and said it is expecting a GAAP net loss for the year. Shares of are off about 5.5% today.