Hedge fund Ides Capital on Thursday asked U.S. car service and tire center operator Monro Inc to pressure its controlling shareholder to drop a veto to a sale of the company.

In a letter to Monro seen by Reuters, Dianne McKeever, Ides co-founder and chief investment officer, said she was "aware" that potential buyers of the company had been rebuffed. She did not disclose the source of this information in the letter.

McKeever said she believed the reason Monro was not exploring a sale was because its controlling shareholder, 83-year-old investment banker Peter Solomon, was demanding an "onerous" premium to allow a deal. Solomon owns just 2% of Monro but controls it through supervoting shares.

Solomon exercised his veto at Monro's annual general meeting last year to retain control of the company, blocking a resolution by Ides to do away with supervoting shares even though the proposal was backed by 88% of shareholders.

Monro has said it has no legal mechanism to take away the rights bestowed by supervoting shares.

Ides told Monro the car service company should form a strategic board committee to engage with potential buyers. If Solomon blocks a sale by asking for more than what bidders offer, Monro should disclose this in accordance with its obligations under securities laws, Ides said.

Were this to fail, Ides said Monro's board of directors should resign. Ides also called on Monro shareholders to withhold their votes for the five directors up for election at this year's annual meeting on Aug. 16 to register their frustration.

A Monro spokesperson did not immediately respond to a request for comment.

Shares of Monro, which has a market value of about $1.5 billion, are trading at a 30% discount to its peers, Ides said in its letter. The stock has shed nearly a quarter of its value since the beginning of the year.