Judge throws out Astec shareholders' action

MINORITY shareholders in the computer power-pack maker Astec (BSR) failed in their High Court bid today to force a buyout of their shares. Mr Justice Jonathan Parker ruled that a Companies Act petition launched by the minority members, led by Norwich Union, Electra Fleming and Equitable Life, was "an abuse of the process of the court". He said the petition under section 459 and 461 of the act was based on allegations that Astec's affairs were being conducted in a manner unfairly prejudicial to members' interests.

The shareholders sought a court order requiring Astec to buy their shares at a fair valuation. But the judge said the court move had a "collateral purpose", namely to exert pressure and force the 51 per cent majority shareholder, Emerson Electric of the US, to buy shares. The judge allowed an application by Astec and Emerson to strike out the petition. He said it was "plainly and obviously unsustainable and bound to fail".