Hedge Fund Reader : Wyevale chairman under fire from hedge fund

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July 31, 2005

Wyevale chairman under fire from hedge fund

The future of chairman of Wyevale Garden Centres, David Williams, seems to be in a soup after Wyevale’s largest shareholder Laxey Partners asked for his removal from the post. David Williams had been appointed as the chairman of Wyevale Garden Centres in February this year. Laxey Partners who own 18.7% of the company’s shares has been demanding his removal from the very beginning, claiming that Williams does not have a clue about anything in the company. Laxey has asked for a meeting with all the shareholders and has reportedly a backing of at least 34%. Noteworthy amongst those backing his move is serial investor Jack Petchey who currently holds 5% of the shares. ‘Wyevale Way’ is a strategic review which has been launched by the company recently in order to amongst other things, sell 28 of the 113 stores and return the cash to shareholders. The company claims to have already spent £2m on the review and on defending itself from the charges made by Laxey. Analysts too are not happy about the step taken by Laxey and say that all this will derail the progress of the changes underway.Telegraph.co.uk reports:

“Analysts were dismayed that Laxey was trying to derail these changes. Richard Ratner at Seymour Pierce said: "It is ridiculous. I don't understand where Laxey think they can get value out of the property." He said removing Mr Williams would be a "travesty."

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July 31, 2005 in Regulation | Permalink