NORCROSS, Ga. (HedgeWorld.com)–Shareholders rejected a plan of dissolution that would have put the remaining assets of Novoste Corp., a medical-technology company, into a liquidating trust.
The rejection is a victory for Steel Partners II LP, an activist hedge fund, which has solicited proxies in opposition to this proposal. Steel Partners’ objection has been that a liquidation would cause the expiration of an asset created by U.S. tax law, Novoste’s net operating loss carryforwards.
Shareholders approved three other proposals, which were not the subject of a proxy contest:
oA proposal to approve an asset sale agreement amongst Novoste, Best Vascular Inc., Fairfax, Va., and Best Vascular’s parent corporation, Best Medical International Inc. According to this agreement Novoste will sell substantially all of the assets of its vascular brachytherapy business to Best Vascular.
oA proposal to change Novoste’s name to NOVT Corporation (or, if that name isn’t available in Florida, where Novoste is incorporated, to NVTE Corporation).