UTICA, N.Y. (WKTV) - An investment managing firm has some harsh words and accusations for a local, multi-million dollar company.
Voce Capital Management is an advisor to Voce Catalyst Partners-a stockholder in ConMed Corporation.
Voce Capital has spent the past several months researching ConMed's operations and prospects.The result: a scathing, 13-page letter to the company Board of Directors, in which Voce Capital calls the company a, "subscale player surrounded by much larger and more successful competitors."
The letter goes on to say that, "multi-generational dominion over ConMed by its founding family has caused this poor performance."
ConMed develops and sells medical equipment. Their stock was down .61% Thursday.
Voce Capital goes on to accuse ConMed of "an alarming degree of nepotism and cronyism" in their hiring practices, saying, "the time has come for the Corasanti family to abdicate the ConMed throne."
Company CFO Robert D. Shallish, Jr. issued a brief, generic response to Voce Capital Management's letter:
"We welcome and respect the views of all ConMed shareholders. While we maintain an open dialogue with the investment community, we do not comment on interactions with individual shareholders. Consistent with its fiduciary duty, ConMed's Board of Directors remains open to evaluating any potentially value-enhancing opportunities. Currently, we are focused on executing our business strategy, which the Board believes is in the best interests of all shareholders, customers and employees."
Voce Capital Management's suggestion? Take advantage of a white-hot acquisition market and sell the company.
To read the full text of the letter, click here.