Investor backs Provvy

US HEDGE fund Coltrane Asset Management last night threw its weight behind Provident Financial in a hostile takeover battle.

Coltrane, which has a 4pc stake in the doorstep lender, said that it is opposed to the bid by rival Non-Standard Finance.

It is the second major shareholder to back the Provvy.

The takeover is also opposed by fund manager Schroders, which has a 14.6pc stake.

NSF’s bid is backed by three shareholders that own more than 50pc of the Provvy’s stock.

A Coltrane spokesman said: ‘In our view the Provident board understands the need to execute on its vision and explore all its options, so we need to give it an opportunity to do that rather than rush to take this offer.’

However, the Provvy was slammed by NSF for paying its chief executive Malcolm Le May a £573,000 bonus. He was handed the cash as part of a total payout of £1.4m for 2018, during which shares dropped 13pc.

NSF accused the Provvy of ‘over-rewarding failure’. It added that shareholder advice group ISS has warned that Le May’s pay has not been ‘sufficiently aligned with performance’, and recommended a protest vote at Provvy’s AGM later this month.