Victoria board battle takes fresh twist
THE battle for control of Worcestershire carpet manufacturer Victoria has taken a fresh twist with the current board blasting the potential bidder for the business.
The consortium headed by former Victoria director Alexander Anton and New Fortress Finance Holdings Ltd is urging shareholders to back their campaign to maximise value from the business.
It issued a strong statement last week outlining its position; a position refuted by the current board.
A general meeting next month will hear both sides put forward their cases for the future of the firm.
In a bid to seize the initiative, the existing board has fired a shot across the consortium’s bows, to show its unwillingness to be intimidated.
In its latest statement, the board said: “The board would like to place on record that it strongly refutes much of the content of both the Requisitioners’ RNS announcement and the Requisitioners’ Statement, which both contain statements that are misleading.
“The board notes that the Requisitioners continue to suggest that they only seek to replace the two non-executive directors of the board with their four proposed directors to give themselves board control.
“However, the board considers the hostile conduct of the consortium generally, combined with their aggressive statements about the board as a whole, to be irreconcilable with their suggestion that the proposed directors can work together harmoniously with the executive directors. The Requisitioners are also repeatedly threatening directors via legal letters of the actions that they may take against them personally.”
The board said it would be writing to all shareholders shortly with its detailed response to the consortium’s claims.
The firm said it had been made aware that stakeholders in the business, including employees, suppliers and customers, were concerned about the proposed changes.
The statement continues: “The board has a duty under the Companies Act 2006 to act in a way that it considers in good faith would be most likely to promote the success of the company for the benefit of its shareholders as a whole and not just the Requisitioners and the other minority shareholders who may currently be supporting them.
“Certain shareholders would prefer the option of realising their investment in the company in the short term. In line with its duty to act in a way which it considers would be most likely to promote the success of the company for the benefit of shareholders as a whole, the board placed the company and its operating businesses into the formal sales process announced on January 13, 2012 so that shareholders would have a real choice.”
It has urged shareholders not to take action until after they receive formal letters from the board outlining its position.
