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Relentless Burton Targets Cenveo

May 2005

A letter written on April 8 by Cenveo Chairman Susan O. Rheney on behalf of the directors denied that Burton's overtures had been disregarded and indicated that the best route to maximizing shareholder value was to stick with the company's game plan.

"While we disagree with virtually all of the assertions made in your letter, we agree that the stock of Cenveo has been significantly undervalued by the market at large," Rheney wrote. "The board of Cenveo has not been 'dismissive' of any proposal made to it. ...Based on our analysis, presently we believe that maximization of long-term shareholder value will be best achieved by the successful execution of the company's strategic plan."

Rheney also wrote that the company will continue to seek a new CEO, which will be separate from the role of board chairman, "as a matter of good corporate governance."

Despite the cool reception from Cenveo, Burton is pressing the company to come to the negotiating table and could request a special meeting of shareholders.

"We believe that if the company's cost structure were brought in line with those of its publicly traded peers, substantial value will be created for its shareholders with the stock potentially worth at least $10 to $12 a share," Burton wrote.

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