Hedge fund in new attack to oust boss at Speedy Hire
ACTIVIST investor Toscafund has attacked two Speedy Hire board members in a last-gasp attempt to oust boss Jan Astrand.
The hedge fund led by Martin ‘the Rottweiler’ Hughes has been embroiled in a war of words with Speedy Hire over its leadership.
Toscafund – which has a 19.4pc stake in the tool rental firm – wants to replace Astrand with turnaround specialist David Shearer after the share price fell by half over the past year.
The battle between the two started in July when Speedy Hire’s decision not to merge with rival HSS Hire angered Toscafund, which holds a significant stake in HSS.
Toscafund criticised Astrand’s appointments of Robert Contreras and Robert Barclay as independent non-executive directors. It said Barclay had a ‘complete lack of relevant board experience’, and Contreras had a ‘blatant lack of independence’ due to his close relationship with Astrand after the two worked together at vehicle hire firm Northgate for almost eight years.
The activist investor said: ‘Jan Astrand’s actions and poor leadership have significantly weak- ened the board, and Speedy Hire and its shareholders have suffered for it.’
But Speedy Hire says Astrand is essential to the firm’s recovery and claims that Shearer’s turnaround services are ‘no longer relevant’. Both sides have penned open letters in the ongoing battle. Yesterday Toscafund called for backing from corporate governance experts ISS, who said: ‘Shearer’s appointment would reinforce the board at a very challenging time for the company.’
Toscafund said Shearer’s expertise was ‘urgently needed’ to redress corporate governance failings instigated by Astrand. It claimed Astrand’s self-appointment as executive chairman was a ‘direct contravention’ of UK governance standards.
Toscafund also highlighted Shearer’s ‘strong track record in governance’, having been involved in the turnaround of Crest Nicholson, STV Group and Mouchel.
Speedy Hire urged shareholders reject Toscafund’s proposals at a special general meeting on Friday. Speedy Hire shares were flat at 36.5p