Fermi's second-largest shareholder backs board in dispute with CEO

Investing.com -- Fermi Inc.'s second-largest shareholder has sided with the company's current board as former chief executive officer Toby Neugebauer attempts to regain control through a special shareholder meeting.

Caddis Capital, holding a 9.3% stake in the data-center developer, said it supports the April ousting of Neugebauer and opposes his efforts to appoint new directors and force a company sale, according to a Bloomberg report on Monday that cited a company statement.

Griffin Perry, managing partner at Caddis, said Fermi's market valuation does not reflect the strength of its underlying assets. Perry said a sale at current prices would deprive shareholders of significant value.

Caddis expressed confidence in the current board's ability to implement Fermi's strategy and in the company's prospects.

Neugebauer is seeking a special shareholder meeting on May 29 to expand the board and elect himself along with several additional directors. A trust connected to his family holds approximately 15% of Fermi's shares, making it the largest shareholder, according to Bloomberg data.

Last week, Fermi declared Neugebauer's call for the meeting invalid and urged shareholders to disregard his consent solicitation.

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