Micrel holders urged to reject Obrem proposals

Proxy Governance said the slate of candidates nominated by shareholder Obrem Capital Management is "underwhelming."

Meanwhile, Obrem requested that Micrel share certain information with shareholders, including previous analyst day presentations "that show Micrel management's record of dramatically missing forecasts."

In a letter to shareholders on Thursday, Obrem said it believes "such information would show that Micrel's board has not held management accountable for missing forecasts by large margins."

In response, a Micrel spokesman referred to a statement in Proxy Governance's report that said, "this proxy challenge may single-handedly redefine the term 'ill-advised.'"

Obrem owns 10.7 million shares, or a 15 percent stake in the San Jose, Calif.-based semiconductor.

In March, Obrem called for a special meeting of shareholders and the following month announced plans to overhaul the board. Obrem is seeking the replacement of the entire board, the expansion of the board by one seat to six members and the election of its own slate of nominees.

Obrem also wants to cancel Micrel's shareholder rights plan, which is triggered by the acquisition of a 15 percent stake in the company.

A so-called "poison pill" provision generally makes a hostile takeover more expensive for the buyer.

Obrem has previously pushed for a sale of the company.

Micrel shares fell 14 cents to $9.70 in morning trading.