Activist investor calls for an end to 'shocking reign' of Mr Kipling's boss
An activist investor has called for an end to the ‘shocking reign’ of Mr Kipling’s boss.
Shareholder Oasis Management said Gavin Darby’s tenure as chief executive of the cake maker’s owner Premier Foods has left the group in ‘a zombie-like state’. Hong Kong investor Oasis is the group’s second-largest investor with a 9.3 per cent stake.
It has called for Darby, 62, to be removed and is threatening to replace him ahead of the AGM on July 18.
Pressure: Oasis Management wants Mr Kipling boss Gavin Darby to be removed
Oasis accused Darby of ‘self-interest and self-preservation which does not respect the interests of shareholders’.
A spokesman said Darby had ‘overseen five years of failure which has led to considerable destruction of shareholder value’.
The spokesman added that the chief executive ‘frustratingly has driven Premier Foods into its current zombie-like state’. Darby ‘had no credible strategy to return’ the company to growth, he said.
‘As the largest independent shareholder, we have completely lost faith in him. It is time for change,’ said the spokesman.
Oasis is proposing that Premier Foods’ chief financial officer Alastair Murray replaces Darby temporarily as it hunts for a replacement. It said it has already been approached by ‘chief executive candidates’. The firm has been under pressure to improve its performance since rejecting a 2016 takeover bid from US food-maker McCormick. Shares have plunged 36pc since the deal fell through.
But Premier hit back at Oasis and praised Darby’s track record of ‘successfully transforming’ the business. Chairman Keith Hamill said the board recommends shareholders back Darby at the AGM.
He added: ‘The board believes that Gavin Darby is running the company well.
‘In contrast, the Oasis proposal offers no constructive solution to the challenges being addressed and involves the risk of creating instability.’
Most watched Money videos
- Skoda advert for the latest version of its bestselling Octavia
- Hyundai advert for the latest generation of its i10 city car
- Thames Water gives tips for saving water as heatwave comes back
- Honda's new CR-V in action
- Aston Martin's Cygnet city car with a 430bhp V8 engine
- Why do women invest less then men?
- Land Rover creates one-of-a-kind defender for milestone
- BUDGET 2013: Fuel duty tax rise scrapped
- House price increase due to high demand for property
- The Pru (Prudential) literally put an elephant in the room in ad.
- How the summer Budget affects tax, pensions and wages
- This is Money: How to invest a pension pot in retirement
- Buy British, Rolls-Royce chief Warren East tells Donald...
- M&S; set to launch cheaper energy deals for customers as...
- Tesco executive who was shamed over the collapse of...
- Landlord British Land is walloped by High Street woe,...
- Beat the mortgage trap: How to avoid getting ripped off...
- Strewth! Failed Aussie store that took over Homebase...
- The long goodbye: Royal Mail and Countrywide chair quits...
- CITY DIARY: Starbucks mogul Howard Schultz is urged not...
- Cathedral City cheese and Clover spread cream in the cash...
- Amazon rivals Walmart and Microsoft team up to make...
- Ocado tycoon's fortune is held in a secret trust in the...
- MARKET REPORT: First Group drives on with Greyhound bus...
- More than 250 jobs are set to go at Asda as it prepares...
- Brexit uncertainty and poor wage growth could see Bank...
- Is the pensions dashboard doomed? Rumours Government is...
- ASK TONY: Barclaycard sent my card to a stranger - now...
- How I was duped into selling bogus tractors on eBay: Navy...
- How to claim your power of attorney refund now, at the...