Sherborne threatens new requisition for Electra

Sherborne Investors has written to the Board of Electra proposing a resumption of discussions about board representation and participation in an expanded review of options to increase Electra’s shareholder value and threatening to requisition a meeting of shareholders if Ian Brindle, Edward Bramson and a new independent director aren’t appointed to the board of Electra.

Given the resounding rejection of Sherborne’s proposals last time, shareholders may start to lose patience with Sherborne’s tactics – which involve costs to them and distract Electra’s management from doing their day job. Shareholders will rightly question why the fund should dance to the tune of one shareholder, albeit a large one. Sherborne’s shareholding in the company has been creeping up and now stands in excess of 25% – if they get past 29.9% they will have to make a full bid for the company.

UPDATE

20 minutes after this announcement Sherborne announced that it wants to raise £100m from its investors to repay loans it has taken out to buy Electra shares and to maybe buy a few more

ELTA : Sherborne threatens new requisition for Electra