the termination of its current CEO and chairman, Carl G. Anderson, Jr. The Board said that it had lost confidence in Mr. Anderson's ability to lead the company. In the interim, the board has brought back former president and chief operating officer of Arrow, Philip B. Fleck and made him interim President and CEO. The Company also announced that the Board elected R. James Macaleer non-executive Chairman of the Board of Directors.The company stated,
"During this period the company has repeatedly failed to meet the sales and earnings targets provided to the investment community as well as projections Mr. Anderson has provided to the board,"The company also stated that it currently expects fiscal year 2007 sales and earnings per share to be in near the low end of targets earlier provided in the Company's second quarter press release of March 27, 2007.
Both these announcements came on top of a notice from the McNeil Trust that was made public by Arrow International of the Trust's intent to nominate five persons for election as directors at the 2007 annual meeting in addition to the three persons it has already indicated it planned to nominate. In essence, The McNeil Trust seeks to elect 100% of the directors of the Company despite the fact that it only owns 10% of the outstanding shares. At this point, Arrow International has indicated it has no plans to block the Trust's attempt to take over the board and effectively the company.
What exactly is going on?
For more on the changes see the below story in the Philadelphia Enquirer on May 17 and articles published today, May 31:
Philadelphia Enquirer (May 17)*
Forbes
Wall Street Journal (subscription req.)
Street Insider (subscription req.)
Houston Chronicle
Trading Markets
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