Biopharmaceutical company Minerva Neurosciences Inc (NasdaqGM:NERV) reported on Tuesday the exercise of warrants held by certain institutional stockholders
in connection with a private placement as well as completion of the purchase of common stock in the open market by the chairman of its board of directors.
Low profile US and European institutional stockholders
own the rest of the equity in the business.
The transaction, which includes a private placement of a minimum USD11m of Paulson common shares to certain institutional stockholders
of VBI and an additional investor, will see VBI's pre-merger shareholders acquiring a combined 59% voting stake in Paulson, the latter said.
The company repurchased 5,771,126 of such shares from two institutional stockholders
at a price of USD 20.
Nguyen is the only individual who owns 5 percent of the company's stock, though there are institutional stockholders
with that amount as well.
Glass Lewis & Co and RiskMetrics Group, Inc are firms that advise institutional stockholders
on how to vote their shares.
Given the dominance of institutional stockholders
in developed stock markets compared to their less developed counterpart, it is our conjecture that the differences in tail behaviors across these markets can possibly be attributed to differences in investment behavior of institutional versus individual investors.
The silence in turn is caused by the prevalence of conflicts of interest among institutional stockholders
Under the banner of "accountability," institutional stockholders
and others have presented companies with an increasing number of stockholder proposals seeking to require majority approval of directors, rejecting the plurality vote standard that applies to most corporations.
Mr Whitworth said that he and representatives of four other institutional stockholders
, owners of about 16 per cent of Tyco's two billion shares, had lobbied new chief executive Ed Breen to replace the old regime's board members during a a meeting in New York on his first day in post.
The company has been negotiating for more than a year with some of its big institutional stockholders
and agreed to the change several weeks ago, spokesman John Dreyer said Thursday.
In 1992 and again in 1995, the board and management met with institutional stockholders
and then issued a statement of corporate-governance policies, which is reprinted in the proxy statement.