Davenham rebel loses takeover battle

THE rebel investor who bought a large chunk of shares in Manchester-based finance firm Davenham has lost his battle to wrest control of the company.

David Anthony, a former CEO of Hitachi Capital, only managed to get the support of 30% of shareholders’ votes for his resolutions calling for the removal of current chairman James Kerr-Muir and group managing director Paul Burke. Almost 69% of shareholders voted against his plan.

Anthony had criticised the firm’s management team for what he believed to be a lack of vision regarding an exit strategy. Last week, he told TheBusinessDesk.com that he believed that significant parts of the business – including its asset and trade finance arms – were “salvageable” if new equity were to be injected and its lending was renegotiated. He had argued that unless the current board was replaced, shareholders would not see any return on their investment.

Anthony had proposed that he himself should be voted in as chairman and former Secure Trust Bank CEO Gary Jennison to be Davenham’s new CEO.

“I’m unable to gain any evidence that there is a reorganisation plan in place,” he said.

In its circular to shareholders requesting that they vote down Anthony’s resolutions, directors had said that it had already been through a strategic review process which flushed out 60 interested parties, but none of these were willing to offer anything like the sum which would be needed to repay its banking syndicate.

The board also said that the banking syndicate “did not wish to see any changes” to management and added that it believed the banking syndicate would recall its loans, sparking an administration process, if the resolutions were approved.

Yesterday, Davenham’s board reiterated its view that “it is likely there will be no value for shareholders” once its asset book is wound down.