Its board has written to shareholders recommending they vote in favour of Creo's director nominees at next month's annual and special meeting.

In the letter the board stated: "The dissidents' proxy solicitation proposes to hand control of the company to a group with an ill-conceived and high-risk approach that will jeopardize the future of the company, without offering any compensation to shareholders."

The full text, available at www.creo.com/shareholder value, goes on to explain in detail why the firm believes the dissidents' cost-cutting proposals and management changes are detrimental to shareholder value.

Fund management firm Goodwood and turnaround specialist Robert Burton are leading the dissidents in their plans to oust chief executive Amos Michelson and replace him with Burton.

Goodwood chairman told PrintWeek: "We'll be filing our own circular in short order wherein we will be addressing our plan details as well as some of the comments that the incumbents have made in their circular." He added that this would be in a matter of days.

Story by Barney Cox