Premier Foods (PFD), makers of the famous Paxo stuffing, may itself be about to be stuffed by one of its largest shareholders. Oasis Management Company Ltd who own nearly 10% of PFD, is encouraging all shareholders to vote for the removal of the current CEO, Gavin Darby, at the upcoming AGM on the 18th July. Oasis claim that:
“Gavin Darby has driven Premier Foods into its current “zombie-like” state–he has no credible strategy to return Premier Foods to growth. Long-suffering shareholders need new energy, leadership and fresh ideas. The status quo is no longer tenable for all stakeholders – shareholders, pension holders and employees.”
You can read their main arguments in this presentation pack.
It is clear that the Premier board intend to resist this proposal and they have already issued a short statement to that effect :
“The Board strongly believes that Gavin Darby is the best person to lead the Company and to execute the Board’s strategy. Having regard to the best interests of the Company’s shareholders as a whole and its other stakeholders, the Board unanimously recommends that shareholders vote in favour of Gavin Darby’s re-election as the Chief Executive Officer at the Company’s AGM and will communicate further in due course”
We await further details of the board’s arguments which will no doubt attempt to refute the arguments deployed by Oasis.
So, quite a bunfight brewing it would appear. The food metaphors will be flying as this one progresses.
If any members are shareholders in Premier and wish to discuss these matters in more detail with either of the protagonists, then please contact Mike Dennis, via email mike.dennis (at) sharesoc.org and he will try to organise a suitable meeting.