MONTREAL, May 26 /CNW Telbec/ - Letko, Brosseau & Associates, the largest
shareholder of Forzani Group Ltd. ("FGL"), announced today that it intends to
support FGL's nominees for the board of directors.
Letko Brosseau has been a significant shareholder of FGL since 2004 and
currently exercises control or direction over portfolios that hold 4,846,135
shares of FGL, equivalent to approximately 15.9% of the shares outstanding.
Letko Brosseau intends to vote its shares for FGL's nominees at the company's
Annual General Meeting on June 10, 2009.
"As long-term shareholders of FGL, our analysis is that the incumbent
board has the level of competence and experience required in order to provide
the company with the direction necessary. We also believe the board is acting
in the interest of all shareholders," said Peter Letko, Partner, Letko
Brosseau. "It is not clear to us that Crescendo or its nominees have a full
appreciation of the strategies being pursued by FGL nor do we have confidence
that they are prepared to give management the time required to fully implement
In reaching its decision Letko Brosseau has reviewed FGL's management
proxy circular and a dissident proxy circular from Crescendo Partners. Letko
Brosseau has also considered other relevant factors, including the performance
of FGL, its strategies and growth objectives, recent changes in FGL's senior
management, and the current economic environment. In addition it has met
representatives of Crescendo Partners to better understand their concerns.
Letko Brosseau & Associates is a Canadian investment manager with offices
in Montreal and Toronto. The firm manages assets in excess of $20 billion
principally for pension funds, foundations and individuals.
For further information:
For further information: Mr. Peter Letko, (514) 499-1200; Mr. Daniel
Brosseau, (514) 499-1200