Following is a summary
of recent Forum progress relating to the development of strategic
alternatives for Farmer Bros. shareholders:
Prospective strategic
relationships:
We have begun meeting with parties selected by the Chapman Group,
the food industry investment banking firm engaged to advise shareholder
interests, to explore their potential interests in acquiring or
otherwise assuming responsibility for management of the Farmer Bros.
business operations. We will be evaluating these prospective strategic
relationships based on their ability to make the most effective use of
the company's existing business resources, since making good use of the
resources will enable a new manager to generate value for shareholders
and career benefits for employees. It's our current intention to choose
one of the parties in about a month, and to then work exclusively with
that party to develop a proposal for a transaction.
Plans for realizing
the value of company real estate and securities investments will be
developed after we select someone to manage the business operations, in
the context of that party's strategic and capitalization objectives.
Information
requirements:
In letters from the company's current chairman and Skadden Arps, the law
firm which has been representing management in its responses to
shareholder interests, management has rejected my
October 28 request for cooperative
responses to investor information requirements, insisting that
we follow the burdensome processes of formal demands under either
California’s or
Delaware’s laws that compel management's provision of records.
Copies of the letters will be posted on the Forum web site by Monday,
and will be accessible from a link on the
page presenting the rejected request.
Though the demand
process will impose seemingly unnecessary costs on shareholders, the
process will allow us to obtain all the information needed for an
evaluation of strategic alternatives. We will be drafting an initial
demand for records relating to the company's real estate assets during
the next week, and will welcome your suggestions of specific items that
should be included.
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Your questions and
comments on these or any other matters concerning your investment in
Farmer Bros. will be welcomed.