Hedge fund Pura Vida urges peace at Cutera board, pushes for new CEO search

By Svea Herbst-Bayliss

NEW YORK, April 11 (Reuters) - Investment firm Pura Vida is wading into a boardroom battle at global aesthetics device company Cutera Inc by warning warring directors on Tuesday it may push ahead with steps to boost the company's share price if they fail to settle their disagreements.

The New York-based hedge fund, which owns a 7% stake in Cutera, said it wants the board to "move the company forward with an orderly CEO succession process" with the help of a prominent executive search firm. During the search, Pura Vida wants the current CEO to remain at the helm.

If the board fails to act, Pura Vida's managing member Efrem Kamen said on Tuesday his firm has "identified a world-class CEO and high-quality independent directors" who could help the company.

Pura Vida is also calling on the company to extend the deadline for nominating directors which was in early January.

Cutera's share price has tumbled 58% in the last 52 weeks. It jumped 12% on Tuesday though after details about the standoff on the board became public.

A representative for the company did not respond to a request for comment.

Activist investor J. Daniel Plants and fellow board member and CEO David Mowry on Monday said the board has become "factionalized" and that a group of board members have bungled the company's succession planning after Mowry had said that he wanted to leave.

Plants' Voce Capital and Mowry together own 7% in Cutera.

Mowry and Plants said in a press release that they are pushing for the removal of five of the board's eight directors and are calling for a special meeting.

Cutera on Friday said the board established a special committee of independent directors to review the request for a special meeting and related matters. (Reporting by Svea Herbst-Bayliss; Editing by Lisa Shumaker)