Bromsgrove investors revolt

A SHAREHOLDER revolt is understood to be gathering around the head of Bijan Sedghi, chairman of Bromsgrove Industries.

Sources close to the specialist engineering company say that shareholders have become frustrated by the company's lagging share price and what some see as a lack of strategy under Mr Sedghi's leadership.

Albert E Sharp, the Birmingham stockbroker, which recently resigned as adviser to Bromsgrove, is rumoured to be gathering shareholder support for a management reshuffle.

The rebel faction is reckoned to have the support of 40 per cent of the shareholders, who are dissatisfied with Mr Sedghi and would favour either a new management team or a takeover bid for the company, which is valued at around pounds 63m.

However, Roger Brocklebank at Albert E Sharp denies that his firm is behind such a plan.

He said: ''All relationships have their ups and downs, but that does not mean that we are going behind the back of Bromsgrove Industries trying to stir up some palace revolution. We remain on good terms with them.' But another stockbroker, who declined to be named, said: 'One can not be happy with Mr Sedghi's track record. The share price is what it was eight years ago. The company has got to come up with a positive acquisition or risk a change of management. There are definitely moves afoot. Nobody is acting as cheerleader, but we will all help where we can.'

For his part, Mr Sedghi hopes that the company's next set of results, to be announced on 11 July, will reassure shareholders.

'When we present our results I do not anticipate anything other than shareholders being pleased with our strategy,' he said. 'I will wait and see how that strategy is received.'

Mr Sedghi, who has been chairman since 1987, added that he was disappointed that Sharp had resigned. He said that he had been thinking for some time of adding a second broker, with an international presence, and had recently appointed Smith New Court. This seems to have precipitated Sharp's resignation.

'I am very sad not to have them in a continuing role,' Mr Sedghi said.

'But I cannot believe that anyone at Sharp is planning some sort of coup. I would find it very surprising.'