Antiques dealer Mallett resists bid by activist Gyllenhammar to get on board
Thursday 14 February 2013
The activist investor Peter Gyllenhammar is preparing to overhaul Mallett, the 148-year-old London antiques dealer.
The Swedish entrepreneur, who holds a 26.2 per cent stake in the company, has called for an extraordinary general meeting to be held to decide whether or not he can join its board. Mallett has so far refused to do this, and advised investors to reject the motion when the meeting is held over the next few weeks.
Mr Gyllenhammar told The Independent that he will launch a strategic review of Mallett if he joins the board to improve its financial performance.
Despite its good reputation, Mallett, whose shares have fallen by 14 per cent over the past 12 months, is forecast to make a £400,000 loss this year. It does not currently pay a dividend.
"With its superb reputation, skills and infrastructure, there is substantial potential for Mallett to grow in the $46bn arts and antiques market," Mr Gyllenhammar said.
"In order for the company to capture some of its potential, I strongly believe that its drive must come from directors who represent true ownership of the company – not just well-paid non-executives with no real risk.
"Such ownership drive is what builds small companies to being bigger and more profitable. The ownerless model was tried in the Soviet Union for many decades, and we all know how that worked out."
Mr Gyllenhammar has an impressive record, and has generated good returns investing in companies such as Cape and 21st Century.
In response, Mallett said: "The board believes the proposed resolutions are not in the best interests of the company."
- 1 Cyclist who knocked down three-year-old girl says his life has been 'destroyed'
- 2 Chelsea victory parade: Chelsea mocked on Twitter as 'tens of fans' pack the streets of London
- 3 US warned by Chinese media to stop meddling or 'war will be inevitable'
- 4 Woman, 21, dies after taking contraceptive pill that 'caused fatal blood clot'
- 5 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Cyclist who knocked down three-year-old girl says his life has been 'destroyed'
US warned by Chinese media to stop meddling or 'war will be inevitable'
How China's richest man Li Hejun lost $15bn in an hour - and made a fortune
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Snoop Dogg on why he doesn't regret displaying misogyny towards women
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
A nation of inequality: How the UK is failing to feed its most vulnerable people
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...