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CH Energy Group and GAMCO Asset Management Reach Agreement

Posted by Dana in April 28th 2009

CH Energy Group, Inc. (NYSE: CHG) and GAMCO Asset Management Inc. (GAMCO) announced that they have entered into an agreement under which CH Energy Group will expand its Board of Directors to nine and appoint Edward T. Tokar to the newly created directorship for a term ending at the 2010 Annual Meeting of Shareholders. This appointment will be made at the May 21, 2009 meeting of the Board of CH Energy Group. Tokar will be an independent director.

As part of the agreement, GAMCO, which together with its affiliates beneficially own approximately 1.27 million shares of CH Energy Group common stock (representing approximately 8 percent of the Company’s outstanding shares), will withdraw its notice of intent to nominate three directors at the 2009 Annual Meeting and vote its shares in favor of the election of Manual J. Iraola, E. Michel Kruse and Ernest R. Verebelyi, the Board’s nominees, at the meeting. GAMCO has also agreed to support the Board’s nominees for directors at the 2010 Annual Meeting if Tokar is included in the Board’s recommended slate for election at that meeting in 2010.

“The CH Energy Group Board is always open to considering new independent directors who represent all shareholders and add to the skills and experience already present on the Board. We welcome ongoing dialogue with our shareholders and take their views seriously, ” said Steven V. Lant, Chairman, President and Chief Executive Officer. “The Board and management look forward to working with Ed Tokar and welcome the new perspectives and insights he will bring.”

Tokar is Senior Managing Director of Beacon Trust Company, a position he has held since 2004, and has more than 30 years of financial investment experience. Prior to joining Beacon, Tokar was Chief Executive Officer of Allied Capital Management and Vice President of Investments at Honeywell International. Tokar earned a Bachelor of Arts degree from the University of Maryland and a Master’s in Business Administration from the College of William & Mary; he holds a C.P.A. designation. He is currently on the Board of Advisors of RFE Investment Partners, L.P., a director of Teton Advisors, Inc., The Gabelli Dividend and Income Trust and The Gabelli Global Deal Fund.