Checkpoint Systems to MMI Investments: We plan to remain independent

Tom Paine


Checkpoint Systems in a letter to MMI Investments, L.P., dated yesterday (included in an SEC filing): Checkpoint did "conduct a thorough internal review of the company’s strategic alternatives over the course of June and July of this year", and concluded "that it is currently in the best interests of Checkpoint’s shareholders for the company to remain independent and to continue to pursue its strategic plan". While Checkpoint indicates it is still willing to talk to MMI, this is a more specific rebuff than its public press release of August 10.

MMI, which holds a 4.9% stake in Philly-based Checkpoint, sent a letter to management dated August 10, in part saying: "We have recommended that Checkpoint hire an investment banker to explore strategic alternatives, which the board summarily dismissed. We have attempted to connect Checkpoint with those who are highly qualified and potentially interested in buying the company, to no avail". Now Checkpoint is saying it has already gone through an exploration of strategic alternatives.

Checkpoint makes systems that help retailers reduce the amount of inventory shrink (usually caused by theft) that they experience.



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