Decisions and timing at Sevco

Life is about decisions.

Whether or not it is a good one is usually down to the timing.

I learned this morning that David Somers appears to have jumped ship from Laxey Partners some weeks ago.

I didn’t know this at the time and neither did the hedge fund chaps.

He simply was not keeping them in the loop.

So much so that an Ibrox director did the decent thing and phoned Philip Nash to check if Laxey were being fully appraised by the Chairman.

They were not.

In calling Nash it was a sensible and ethical back channel communication from a chap that is often derided by the klan as being thick and a ‘spiv’.

The bottom line is that things that Laxey partners should have known about they had no idea of.

With Norman Crighton leaving the board last month the hedge fund had no one other that Somers to keep them in the loop.

For example Laxey Partners knew nothing of the decision to sell Lewis McLeod.

In the end selling up to the furry trio made sense.

With that in mind I chatted with a Square Mile chap this morning.

He is very useful in explaining the ways of the City to me.

I was puzzled by the action of the Three Bears and, dear reader, so was he.

He stated to me that the only thing they had achieved was t bump up the share price.

This means, of course, that any takeover is now more expensive.

As it stands now Mr Ashley is still the main player in the board room and sources tell me to expect a move to place Mr Barry Leach on the RIFC board.

An insider said to me that Chairman David Somers “…is now in job protection mode. That is why he jumped ship from Laxey…”and that might explain the comments attributed to Mr Colin Kingsnorth apropos the RIFC chairman.

Now to the future.

The Three Bears, along with others, could have enough shares to call and Extraordinary General Meeting.

However an EGM will not happen overnight and it would be useless if they could not be sure of a majority of the shares in a vote.

If Mr Leach is placed on the board then Ashley will have his two guys in place.

I think we can safely say that Mr Somers will vote with them.

So the Ashley plan of action that Mr Derek Llambias has been working to remains in force at Sevco.

Do not be surprised if Lee Wallace is the next player to leave as I understand a buyer has been sourced.

What the future holds for Sevco really comes down to what Mr Ashley wants to do.

He could do walking away or he could dig in and fight.

As the news breaks that David Cunningham King has bought 14.5% of RIFC then it will be Big Mike’s decision and he will need to get his timing right.


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