Authorization

De La Rue boss avoids AGM rebellion risk but still faces challenges

De La Rue has faced down the threat of a rebellion at this week’s AGM but boss Martin Sutherland is effectively on “probation” following his botched handling of a crucial contract to print UK passports.
A leading investor warned that the “jury is very much out” on De La Rue’s management and “something is going to have to change”.
“We don’t think he’s quite on the right page but we’re still discussing it with him,” said the investor.
A meeting between the shareholder and the chairman was described as “not very impressive in terms of what we would like to see but these things are a process”.
De La Rue boss avoids AGM rebellion risk but still faces challenges

De La Rue prints British banknotes 

Credit:
Alamy
The banknote and security printer initially said it would launch a legal challenge after losing the ?490m, ­10-year British passport contract to French-Dutch rival Gemalto in March.
But just weeks later Mr Sutherland performed an about-turn, saying it was “sensible and pragmatic” not to start a court fight with the Government.
One source close to De La Rue said: “Martin’s position was under huge pressure a few months ago but he’s back in the safe zone for now. As long as he doesn’t [make a mistake] before the half-year results he should be fine.”
De La Rue
The pressure on management has been ramped up by activist investor Crystal Amber. However, Mr Sutherland has done enough to ease investor concerns to prevent a rebellion at Thursday’s AGM.
Richard Bernstein, who leads Crystal Amber, which is understood to have built up about a 4pc stake in De La Rue, said ahead of the AGM: “Our perspective is still that unless this company can demonstrate growth to [investors] there will need to be change.”
 
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«    Декабрь 2018    »
ПнВтСрЧтПтСбВс
 12
3456789
10111213141516
17181920212223
24252627282930
31