Irvine-based Autobytel Inc. said Thursday it struck a deal with its largest investor that allows him to acquire more of the automotive marketer in exchange for not seeking changes to the company’s board, management or strategy.
The deal with Chicago-based activist hedge fund investor Clint D. Coghill allows him to acquire more than 15% of Autobytel without triggering provisions of the company’s anti-takeover plan.
His Coghill Capital Management LLC and a related fund now own 9.7% of Autobytel.
In exchange, Coghill agreed not to agitate for changes at Autobytel.
The company said it “looks forward to working with all of our stockholders to maximize stockholder value.”
Autobytel steers online auto shoppers to auto dealers.
The company’s shares have been in a prolonged slump since 2004, a trend made worse by 2008’s dramatic downturn in auto sales.
The stock is down 80% in the past year on a market value of $20 million.
In September, Autobytel said it hired RBC Capital Markets to “review strategic alternatives,” including a possible sale.
