Founder wins fight for control of card firm

THE founder of scandal-hit credit card firm CPP appears to have won a battle to sack its board and regain control.

Directors last night dramatically abandoned a courtroom bid to stop Hamish Ogston seizing power after it became clear the odds were against them. Ogston set up the firm in 1980 and made £120m when it floated on the London Stock Exchange six years ago.

CPP was fined £10.5m in 2012 for misleading customers into buying worthless insurance for debit, credit and store cards. Ogston failed to take the company private and stepped down as a director in 2013. He has since sought to use his 42pc stake to get rid of chairman Roger Canham, chief executive, Stephen Callaghan, and two non-executive directors.

Schroders, with a 10pc stake, proposed Cable & Wireless Communications chairman Sir Richard Lapthorne, deputy chairman Mark Hamlin and former executive nick Hooper to replace them. But the board said they didn’t have the experience or qualifications.

They said Ogston was backed by Schroders due to his investments with one of its affiliates. The board applied for an injunction to stop Ogston voting. But yesterday they abandoned the move after investor Phoenix Asset Management decided to abstain in the vote.

This meant even if Ogston was barred, Schroders’ 10pc stake would be larger than the remaining 8pc of shareholders who might vote against.