(1) – New York-based HC2 Holdings Inc (HCHC.N) has urged its shareholders to oppose activist investor Percy Rockdale LLC’s proposal to remove Chief Govt and Chairman Philip Falcone.

Percy Rockdale, together with hedge fund MG Capital Administration and its associates, had requested HC2 shareholders in a letter final week to vote in favor of eradicating the corporate’s complete board and putting in the six candidates nominated by them.

The fund, together with its companions, personal a stake of about 6% in HC2, which owns assorted companies together with a development firm, distributor of pure fuel motor gasoline and a wholesale telecom service supplier.

Activist investor Michael Gorzynski, who runs MG Capital, has been stepping up calls to remove Falcone, as the previous hedge fund supervisor faces mounting authorized and monetary troubles.

“Gorzynski is distracting stockholders with Falcone’s private issues to mislead buyers into considering that such issues influence his talents as HC2’s CEO,” the corporate stated in a letter to its shareholders late on Thursday, calling the activist investor’s bid a “smear marketing campaign”.

HC2 stated it employed an impartial counsel to evaluate the influence of Falcone’s non-public monetary issues and “decided such issues don’t detract from his capabilities as CEO in any method.”

HC2 stated Gorzynski’s claims have been false, including that he intends to be the corporate’s interim CEO however has restricted expertise.

MG Capital and Percy Rockdale weren’t instantly out there for a 1 request for remark.

Reporting by Aakriti Bhalla in Bengaluru; Enhancing by Saumyadeb Chakrabarty