Signet rebels urge share action
Tuesday 02 May 1995
Preference shareholders, led by the UK Active Value fund, issued an open letter to Signet chairman James McAdam, criticising the board for offering no alternative strategy to the rebels' break-up proposals. It said: "All we have seen is a vague promise to restructure the company and we believe that a reconstruction would have an adverse effect upon ordinary shareholders." The Signet board dismissed the rebels' attack as "nonsense".
The disgruntled shareholders suggested a package that would see ordinary shareholders receive 20p per share, providing Signet subsidiaries could be sold for more than £700m. They want the board to seek buyers for the subsidiaries and report back on prices that could be achieved.
The rebels look set to lose Friday's vote as several of Signet's key institutional shareholders have pledged support to the company. Flemings, Schroders and Scottish Value fund, which together account for 25 per cent of the ordinary shares, will back the company. Another 12 per cent of ordinary shareholders have also pledged support.
However, the institutions are impatient with Mr McAdam's failure to deliver the financial re-construction he has promised for so long. Peter Seabrook of Flemings said: "McAdam must come up with something. We want to know what proposals the board has."
Mr McAdam is believed to favour a reconstruction immediately after the company's banking facilities are re-negotiated in June. The UK Active Value Fund, led by Julian Treger and Brian Myerson, is seeking meetings with institutional shareholders to see if they will switch their vote. However, Flemings said yesterday that it would not agree to a meeting.
Signet is labouring under debts of £360m and has unpaid dividend arrears of £100m.
- 1 Howard Jacobson: Let’s see the 'criticism' of Israel for what it really is
- 2 Gingers face extinction due to climate change, scientists warn
Jennifer Lawrence face palms Emma Watson at Christian Dior show in Paris
Gingers face extinction due to climate change, scientists warn
Pamplona Running of the Bulls 2014: Briton critically injured in San Fermin festival
Elephant 'cries' while being rescued after 50 years of abuse in India
Google executive died on yacht after prostitute gave him fatal dose of heroin, say police
Sustained immigration has not harmed Britons' employment, say government advisers
British jihadist calls for 'flag of Islam' over Downing Street and Buckingham Palace
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
There’s a nasty smell in the political air – and it’s coming from the Tories
iJobs Money & Business
£55000 - £65000 per annum + excellent package & bonus expectations: Real Staff...
£80000 - £90000 per annum + competitive: Real Staffing: A highly successful Co...
£40000 - £50000 per annum + highly competitive package: Real Staffing: An oppo...
Highly competitive: Real Staffing: VP - Operational Compliance - Global BankA ...