NYCOR Inc., a New Jersey investment company with an 8.2% stake in Zenith Electronics Corp., said Thursday that it will seek control of Zenith’s board.
In a filing with the Securities and Exchange Commission, Sal Giordano Jr., NYCOR’s vice chairman and chief executive, said he met twice with Zenith Chairman Jerry K. Pearlman “to discuss Zenith’s plans for increasing shareholder value.”
At the meetings, NYCOR suggested considering “a possible spinoff of the consumer TV business, although no specific proposals were made.”
Zenith, the last U.S. television maker, said it would consider the plan at a special director’s meeting soon.
NYCOR, a Basking Ridge, N.J., concern, said it will solicit proxies in support of its own candidates to the Zenith board at the next annual meeting of stockholders. NYCOR said it was seeking a list of shareholders from Zenith.
NYCOR said Zenith management “does not have a viable business plan to serve the best interest of Zenith’s stockholders.”
NYCOR added, “The TV business can be turned around with the appropriate input from a management that better understands the manufacturing and distribution of consumer electrical products.”
Zenith had limited comment.
“Zenith’s board of directors will consider NYCOR’s announcement at a special meeting that will be called in the near future. The company does not intend to respond further until the board has had the opportunity to review the matter,” said John Taylor, a spokesman for Glenview, Ill.-based Zenith.