California Micro Devices investor Gamco wants poison pill eliminated

By Lisa Kerner

Charlotte, N.C., Aug. 7 - California Micro Devices Corp. shareholder Gamco Asset Management Inc. said it is disappointed in the unwillingness of the company's board of directors to eliminate its poison pill, according to a schedule 13D/A filed with the Securities and Exchange Commission on Friday.

In June, Gamco asked the company to redeem the preferred share purchase rights under the Sept. 24, 2001 rights agreement and eliminate its poison pill or submit the issue to a stockholder vote.

Gamco also told the company in a letter on Thursday that it is currently inclined to vote for the alternate slate of directors at California Micro Devices' annual meeting on Sept. 17, the filing said.

As previously reported, California Micro Devices' second-largest stockholder, Dialectic Capital Management, LLC, nominated for election to the board John Fichthorn, J. Michael Gullard and Kenneth Potashner.

Fichthorn is Dialectic's co-founder. Gullard is a general partner at Cornerstone Management, Inc. Potashner is chairman of the board of Newport Corp.

California Micro Devices is a Milpitas, Calif.-based maker of application-specific protection devices and display electronics devices for the mobile handset, digital consumer electronics and personal computer markets.

Gamco beneficially owns 2,184,950 shares, or 9.53%, of the company's outstanding stock.

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