Micrel likely defeats proxy contest

Semiconductor maker Micrel Inc. said Tuesday that its shareholders have rejected all proposals by dissident shareholder Obrem Capital Management, based on preliminary voting results.

At a special meeting on Tuesday, Micrel said shareholders appear to have voted against Obrem's board nominees and against a proposal to rescind Micrel's shareholder rights plan, which is triggered by the acquisition of a 15 percent stake in the company. A shareholder rights plan, or a "poison pill" provision, generally makes a hostile takeover more expensive for the buyer.

In March, Obrem called for a special meeting of shareholders and later announced plans to replace the entire board, expand the board by one member to six directors and seat its own slate of nominees.

Obrem had previously pushed for a sale of the company.

The four major proxy advisory firms had recommended that shareholders reject the proposals.

Obrem owns 10.7 million shares, or a 15 percent stake in the San Jose, Calif.-based company.

Micrel shares fell 29 cents, or 3 percent, to $9.44.