Key shareholders 'backing Harland'
MAIN shareholders in Harland Simon, the troubled control systems group, 'will not oppose' the re-election of its chairman, David Mahony, as a director at next week's annual meeting.
After key shareholders met company representatives on Monday, Harland said yesterday that 'a number of major shareholders have authorised the board to confirm that they fully support the steps being taken to improve the company's position'. Mr Mahony intends eventually to stand aside to allow a yet-to-be appointed non-executive director to become chairman.
Harland again said that publicly available documents showed that a problematic pounds 2.45m investment in Perfect Information, an off-balance sheet associate of Harland, was made with money from Oerlikon-Buhrle, a Swiss company.
Oerlikon-Buhrle, from which Harland acquired five companies last year, has denied making 'any investment in any company whatsoever' in its dealings with Harland. It is understood that Oerlikon received no information about Perfect, an on-line information service.
Harland said yesterday it always believed that Oerlikon was the beneficial owner of a stake held by a Liechtenstein trust.
The board could not be responsible for Oerlikon's refusal to confirm or deny to Harland's auditors whether it was the beneficial owner. Harland therefore reiterated that 'the shares were not at any time held for the benefit of any company in the Harland Simon group or for any of its directors or officers'.
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