The Starboard Value LP fund this morning appealed to AOL (AOL) shareholders to elect the three nominees the firm put forward for the board of directors when AOL holds its annual meeting on June 14th.
In the 10-page letter, Starboard, which owns 5.3% of AOL shares, the largest of its investments, says that its been unable to “engage constructively with management and the board of directors” about changes the company should make, accusing management of being “committed to pursuing the status quo.”
Among Starboard’s contentions is that the display ad business is a mess: “We believe that AOL is currently losing more than $500 million per year in its Display business alone, masking what otherwise would be a highly profitable company.”
Starboard’s letter follows an appeal by the company yesterday to re-elect its directors, with the company insisting its “clear strategy is delivering improved results.”
There’s a full deck of slides, as well, provided by AOL here.
AOL shares today are up 14 cents, or half a percent, at $27.75.
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