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Topic: Activist fund Bluebell targets board changes at Richemont (Read 53 times) previous topic - next topic

Activist fund Bluebell targets board changes at Richemont

Activist fund Bluebell targets board changes at Richemont

[html]By Michael Shields ZURICH (Reuters) -Activist fund manager Bluebell Capital Partners is seeking changes to the board at Richemont, Richemont said ht**://www.richemont.c**/en/home/media/press-releases-and-news/request-for-agenda-items on Tuesday, Bluebell’s...
                              

By Michael Shields


ZURICH (Reuters) -Activist fund manager Bluebell Capital Partners is seeking changes to the board at Richemont, Richemont said ht**://www.richemont.c**/en/home/media/press-releases-and-news/request-for-agenda-items on Tuesday, Bluebell’s first salvo against the Swiss luxury group that makes Cartier jewellery and IWC watches.


London-based Bluebell, with around 250 million euros  ($255.98 million) in assets, grabbed the spotlight last year when its campaign at French group Danone led to a management overhaul.


The co*pany has another live campaign ht**://www.reuters.c**/business/st-gobain-shares-rise-bluebell-capital-calls-shake-up-co*pany-2022-05-11 in France targeting construction materials giant Saint Gobain. Its website lists eight co*panies in its crosshairs.


Bluebell wants Richemont to designate a representative of the holders of ‘A’ shares – which are listed on the SIX Swiss Exchange – and elect that representative to the  board, the Swiss group said.


Bluebell also seeks to increase the minimum number of board members to six and to have an equal number of representatives of ‘A’ and ‘B’ shareholders on the board. ‘B’ shares, held by co*pagnie Financière Rupert according to Richemont’s website, are not listed and represent 9.1% of the co*pany’s equity but carry 50% of the voting rights.


The proposals will be submitted at the annual general meeting on Sept. 7. Richemont said it was reviewing the proposals and would co*ment on them in due course.


Kepler Cheuvreux analyst Jon Cox was sceptical that Bluebell would succeed with its plan.


“Richemont’s shareholder structure, giving ten times the voting rights to holders of the B shares, looks out of date co*pared with more modern governance practices,” he said.


“However, the share structure itself means that any change in the makeup of the board will be decided by (Chairman) Johann Rupert and probably not by Bluebell.”


Shares in Richemont, in which activist hedge fund Third Point reportedly built a stake last year, slipped 0.4% in early trade.


($1 = 0.9767 euros)


(Reporting by Silke Koltrowitz; Additional reporting by Pamela Barbaglia; editing by Louise Heavens and Susan Fenton)


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Source: Activist fund Bluebell targets board changes at Richemont (http://ht**://www.oann.c**/activist-fund-bluebell-targets-2/?utm_source=rss&utm_medium=rss&utm_campaign=activist-fund-bluebell-targets-2)