This excerpt taken from the MFLX 10-Q filed Feb 6, 2007.
Starks interests in the Offer may conflict with the interests of our other stockholders in light of Starks equity positions in both MFS and us.
Stark owns approximately 18% of our outstanding common stock and at least approximately 5% or more of MFS outstanding shares, and owns approximately 48% of our shares not held by WBL Corporation or its affiliates. Stark has stated in filings with the SEC that it intends to vote for the Offer. Given that Stark effectively has acquired control of over a majority of our minority shares, we believe the protections of our charter which require related-party transactions to be approved by the majority of the minority shares no longer provide meaningful protection to our minority stockholders. Given that Stark has obtained a significant equity position in both us and MFS, there is a risk that it will vote in favor of the Offer in order to maximize its short-term economic gains as an MFS shareholder, notwithstanding the Special Committees and Boards determination that the Offer is against the best interests of our stockholders. If the Offer is made and Stark is able to control a sufficient number of votes to approve the consummation of the Offer, then our business, financial condition and results of operations could be materially and adversely affected.