Stobart board battle hots up as pressure grows on chair
The bitter battle for control of the Stobart Group has continued to rage after it emerged today that more than 20 of its executives have signed a letter calling on its chair to resign.
The letter to the FTSE 250 company’s board, first reported by Sky News, called on its chair Iain Ferguson to resign ahead of next month’s annual general meeting (AGM).
Reportedly this was because of unhappiness at the way an increasingly public row between former chief executive Andrew Tinkler and Stobart’s board over the future of the business.
The letter was referenced in a letter sent by Tinkler to leading shareholders on Saturday trying to drum up support for his plans to vote against Ferguson’s reappointment at the company’s 6 July AGM, instead favouring his replacement with Philip Day, chief executive of the Edinburgh Woollen Mill Group.
In that letter, seen by City A.M., Tinkler said that over 80 per cent of the executive leadership team were in favour of Ferguson being replaced by Day.
Read more: Row at Stobart escalates as ex-CEO accuses directors of defamation
A Stobart spokesperson said the company was going to set up an independent, confidential hotline for employees to contact with any concerns about the running of the business.
“It is disappointing that Andrew Tinkler has sought the support of certain employees for what is a shareholder vote,” they said.
Tinkler’s letter rails against the “public mud-slinging in which some of my fellow directors have seen fit to engage” and said that he had been “horrified” at recent announcements made by the company.
Read more: Stobart confirms its ex-CEO and Woodford are nominating Philip Day as chair
Stobart announced on 25 May that 7.7 per cent shareholder Tinkler was planning on voting against Ferguson's reappointment and in a 5 June announcement confirmed he was backed by more than 33 per cent of shareholders, including funds controlled by Neil Woodford.
On 29 May the company made an announcement criticising Tinkler and putting forth the board’s own achievements.
In response Tinkler has sued for defamation. In his letter he described the announcement as “highly selective, partial and misleading”.
Read more: Stobart's broker has resigned following a Woodford-backed boardroom row
A Stobart spokesperson said: “It is frustrating that Andrew Tinkler would not continue with internal discussions to resolve this matter, and instead wrote to inform us of his firm intention to vote against our chairman. As a result, we were required under our regulatory responsibilities to inform all of our shareholders of his intention, and to explain the challenges that he has posed.”
Last week the board launched a £3.8m High Court claim against Tinkler over a tax dispute connected to the company’s 2008 acquisition of rail and civil engineering company WA Developments.