Laxey attempt to gain control of Intrinsic Value fails

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The Independent Online

Laxey Partners, the shareholder activist, yesterday failed in its attempt to gain control of Intrinsic Value, the small cap investment fund set up by the entrepreneur and new Channel 4 chairman Luke Johnson.

At a key meeting, all of the resolutions put forward by Laxey, which owns 19.35 per cent of the fund, failed after 59 per cent of the votes were cast against its proposals.

"The board is pleased to note that the attempt by a 19.35 per cent shareholder, Laxey Partners, to take control of the board of Intrinsic Value has failed," Intrinsic said.

It noted that Laxey's resolutions were supported by seven shareholders, representing just under a quarter of the company's share capital.

Laxey, which has been a dissident shareholder at the property group British Land, had ordered the extraordinary general meeting to have Intrinsic Value's chairman, Jimmy West, and a non-executive director, Harry Hyman, ousted. It wanted to replace them with three of its own directors and had planned to then wind the fund up and return the cash to shareholders.

Intrinsic Value said yesterday it would now forge ahead with its own previously announced plans to liquidate the business and return the cash - estimated at £20m to £25m - to shareholders.

Intrinsic also plans to offer shareholders an opportunity to "roll over" their holdings into an open-ended investment vehicle so they can keep their cash in the fund.

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