Investor Ousts Management of Newport Firm
Milton B. Hollander, a Connecticut investor who owns 49% of the stock of Newport Electronics Inc., has ousted the precision instrument maker’s top management and assumed the positions of chairman and chief executive, the company announced Tuesday.
At a special shareholder meeting Friday, Hollander ousted the entire board of directors of the Newport Beach company and replaced them with his own handpicked directors.
In announcing the board changes last week, the company made no mention of any other management changes. But on Tuesday, the company announced that Hollander has replaced Barret B. Weekes as the company’s chairman and chief executive.
Scott Wakeman has been named president and chief operating officer of U.S. operations for Newport. Weekes formerly held the title of president. Wakeman is vice president at a Stamford, Conn., engineering company owned by Hollander.
James R. Lees, a former Newport vice president in charge of European sales, was promoted to the position of executive vice president and chief operating officer for European operations.
Arthur B. Crozier, a Boston attorney, was named corporate secretary, replacing John Virtue.
Ray Lewis, a spokesman for Hollander, said Weekes and Virtue have left the company. Weekes, Virtue and former vice president Norman Gray were bumped from the board Friday, along with outside directors Robert H. Davis and George Pratt.
“With the change in control, (Hollander) is putting in place his own team,” Lewis said.
Hollander launched his bid for control of Newport Electronics in July, nearly four months after Newport had agreed to be acquired by Sensor Control, a Silicon Valley company.
Hollander, who then owned 13% of Newport’s common stock, offered $9.50 a share for enough stock to raise his stake in the company to 48%
After Newport’s board rebuffed Hollander’s offer, he increased the price to $11 a share, or $4.3 million. Both Weekes and Gray announced that they would sell their combined 24.6% stake to Hollander, paving the way for the Connecticut investor to complete his bid for control of the firm.
