Tungsten shareholder Odey Asset Management demands replacement of CEO and chairman - report
14 JUN 2018
Tungsten Corporation [LON:TUNG], a UK-based invoicing services company, faces a demand from shareholder Odey Asset Managementto replace its chief executive Richard Hurwitz and its chairman Nick Parker, Sky News reported on 13 June. The report cited insiders who said Tungsten’s directors have scheduled a meeting today, 14 June at which Odey’s demands will be discussed.
It is thought that Odey has threatened to call an extraordinary general meeting unless Tungsten agrees to replace Hurwitz and Parker with Odey’s own nominees, the report said.
Odey, one of Tungsten’s biggest shareholders, is believed to have been sounding out other shareholders including Indus Capital, Artemisand Hadron in the past few weeks about its dissatisfaction with Tungsten’s senior executives.
One large shareholder is at least believed to be unhappy with what it considers to be excessive pay for Tungsten's senior executives, given that it is a relatively small company and listed on London’s Alternative Investment Market (AIM), the item continued.
The report cited unspecified sources who said Odey’s significant shareholding in Tungsten and the apparent backing of other investors for its proposals mean that Tungsten will have few options other than to accept Odey’s demands.
Tungsten and Odey Asset Management refused to comment on Wednesday evening, the report said.
Tungsten Corporation’s market capitalisation stood at GBP 67.4m (EUR 76.4m) at the close of trading in London on Wednesday.
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