Optical systems vendor Tellabs (NASDAQ: TLAB) says it will appoint Vincent D. Kelly and Gregory J. Rossmann to its board of directors on May 2, 2012, following its annual stockholders meeting. Move comes as the result of an agreement with Dialectic Capital Management, LLC, a major Tellabs shareholder.
"Tellabs and Dialectic have engaged in a series of productive discussions about our business and growth prospects," said Robert W. Pullen, Tellabs chief executive officer and president. "We welcome open dialogue with our shareholders.”
John Fichthorn, Dialectic Capital's managing member, said, "We are pleased to have worked with Tellabs to effect meaningful change on the board for the benefit of all shareholders. We appreciate Tellabs' willingness to work together with us in a constructive manner and look forward to continuing our positive relationship. We are excited about Tellabs' future opportunities and believe the new directors will help the company execute on these possibilities."
Kelly will be a Class I director with a term expiring at the 2014 annual meeting. Rossmann will be a Class III director with a term expiring at the 2013 annual meeting. Tellabs and Dialectic Capital will identify an additional mutually agreeable candidate to be appointed to the Tellabs board no later than December 31, 2012. The board’s size will not grow to more than 11 directors prior to the 2014 annual meeting.
Kelly has been president, chief executive officer, and a director of USA Mobility, Inc. since 2004. He has over 20 years of experience in the communications industry in various executive roles and brings business management and financial and accounting expertise, Tellabs says.
Rossmann is a private investor, a director of several private companies, and a director of NETGEAR, Inc., since 2002. He was a managing director of The Carlyle Group, and has financial and technical experience from Pequot Capital Management, Inc., Broadview International, Dynatech Corp., and other companies.
Tellabs directors William F. Souders and Linda Wells Kahangi are retiring from following the annual stockholders meeting May 2.