£100m fighting fund to force an Ocado shake-up

HEDGE fund Crystal Amber has put aside a £100m fighting fund in a bid to overhaul Ocado.

The British activist investor, which already has a £9m holding in the online supermarket, claims the firm failed to live up to its growth potential.

Boss Richard Bernstein confirmed the company had bought more shares in Ocado on Monday and added that it was prepared to go up to 5pc if necessary.

The move would give Crystal Amber, which has a reputation for triggering takeovers, a £100m stake and allow it to exert its influence as it would be one of the five biggest shareholders.

Yesterday, Bernstein, 54, continued his tirade against Ocado by accusing it of talking ‘nonsense’ over its refusal to give the name, or value, of its first overseas deal.

This partnership, which Ocado dubbed an ‘exciting step in the evolution of its business’ was first announced on Sunday – but drew a mixed reaction from investors amid concerns it wasn’t quite the deal first hoped for.

under the terms of the deal, the unnamed retailer will use Ocado’s software but not its automated warehouse technology.

Little is known about the European partner, beyond the fact it is a regional retailer rather than a national seller – another blow to investors who feel the deal fails to go far enough. Tensions between Crystal Amber and Ocado grew after the retailer failed to invite the fund to visit its new distribution warehouse in Andover.

Shareholders were invited to look around the 240,000 square foot building on Monday, but the invitation was not extended to Crystal Amber.

It is understood that Ocado had restricted the visit to senior shareholders and was not aware Crystal Amber had a holding in the company when invitations were first sent.