Gleacher & Co., the brokerage that’s closing its fixed-income business, won’t face a boardroom challenge from activist shareholder Clinton Group Inc. as the hedge-fund firm won’t nominate its own slate of directors.
Clinton Relational Opportunity Master Fund LP failed to buy more stock in New York-based Gleacher even after offering above-market prices, the fund said today in a regulatory filing. The investor said it now supports the plan of private-equity firm MatlinPatterson Global Advisers LLC, which said May 2 that Gleacher should fire its executives and consider winding down or pursuing a merger or sale.
Clinton Group, part of a coalition that held a 7.7 percent stake in the brokerage as of last month, had proposed an alternate plan to turn Gleacher into an asset manager.
Gleacher said April 10 that it’s closing the fixed-income business, which generated most of the company’s revenue, as salesmen defected and customers suspended trading. The brokerage was in talks to combine with Sterne Agee Group Inc., people familiar with the matter said at the time.
Marcia Horowitz, a Gleacher spokeswoman at Rubenstein Associates Inc., didn’t immediately respond to phone and e-mail messages seeking comment.