8:23 am, March 13, 2023
Bosses at Pendragon have come in for stinging criticism from a minority shareholder, now demanding a seat on the board.
Hedge fund Palliser owns a four per cent stake in the dealer group and is calling for major changes at the top of the company.
In a letter sent last week, it accused the board of becoming ‘distracted’ by the recent failed takeover attempt by Hedin Group.
It was withering in its assessment of Pendragon’s handling of the situation and called on chairman Ian Filby and CEO Bill Berman to ‘refocus on driving profitability by expanding higher margin car servicing operation’.
The activist investor is also calling for a major boardroom reshuffle, which would see it represented among the dealer group’s directors.
Yahoo finance reports that the outfit recently succeeded in masterminding a similar boardroom clearout of FTSE 250 oil firm Capricorn Energy.
Responding to the reports, a Pendragon spokesman said: ‘Pendragon delivered a strong financial and operational performance in 2022, demonstrating the benefits of the continued strategic progress made in recent years.
‘The board maintains a constructive dialogue with shareholders and welcomes all opportunities to discuss matters related to the business, the strategy and the delivery of sustainable shareholder value.’
(Bill Berman, CEO of Pendragon)
This is far from the first time that Pendragon and Berman have in for criticism from investors.
Prior to the collapse of Hedin’s £400m takeover, the firm had been a vocal critic of how the dealer group was being run.
Last year, also saw a major shareholder revolt over plans to give bosses their full bonuses for 2022.
The rebellion eventually forced Pendragon’s remuneration committee chairman Mike Wright to quit his post.
Palliser was formed in 2021 by James Smith, who was formerly the Hong Kong head of Wall Street activist Elliott Management.
The investor has declined to comment on the latest developments.
