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Under pressure Eastern European drinks group Stock Spirits (STCK) will face rebel investors at its AGM later this morning looking who are looking to force through changes to its board.
Frustrated shareholders led by Western Gate Private Investments want to force two non-executive directors, Alberto da Ponte and Randy Pankevicz, onto the board and a vote on the company’s M&A strategy has also been tabled for the meeting.
Chairman David Maloney has instead nominated two other non-exec appointments, claiming the two suggested by Western Gate would not be independent.
Last week Stock Spirits said: “The board has carefully listened to the company’s shareholders and acknowledges that some shareholders wish the board to be strengthened. A process to appoint two suitably qualified independent non-executive directors would be the appropriate manner in which to add fresh perspectives to the board.”
A crunch vote on the company’s board composition will take place at the AGM at 11.30am this morning.
The company has struggled to grow market share and revenues in its key Eastern European markets and the row has already forced the exit of chief executive Chris Heath in late April.
Stock Spirits this morning said no further information on current trading will be given during the meeting.
Morning update
It’s a quiet morning on the markets this morning to start what looks to be a relatively quiet week, though there will be results from Marks & Spencer, Cranswick and Tate & Lyle (see below).
Elsewhere, the big weekend news was that The Co-operative Group is reviving its classic blue logo and announcing a major new membership benefits drive worth £100m a year. See The Grocer’s full story here.
The FTSE 100 has opened down 0.3% this morning at 6,137.5pts.
Early risers this week include Premier Foods (PFD), up 2.1% to 39.8p, Poundland (PLND), up 2% to 170p and Cranswick (CWK) ahead of its annual results tomorrow up 1.9% to 2,334p.
M&S (MKS) has had a slow start to the week, dropping 1.4% to 438.6p this morning. Also down are McColl’s (MCLS), down 2.2% to 156.5p, Applegreen (APGN), down 1.4% to 438.6p and Tesco (TSCO), down 0.9% to 162.8p.
This week in the City
The week kicks off in earnest tomorrow with the announcement of full-year results from pork producer Cranswick.
Next up on Wednesday is Marks & Spencer’s full year earnings release, with the City looking for evidence general merchandise is on the right track under new CEO Steve Rowe and that last quarter’s slowdown in food growth was a blip. Rowe is expected to outline his plans to investors to turn around its struggling clothing sales and continue its outperformance in food. Speculation suggests Rowe may kick-off a review of M&S’s use of store space.
Sweetener producer Tate & Lyle (TATE) has its full year results on Thursday.
Tomorrow in the US shareholders will vote on the merger between Coca-Cola Enterprises (CCE) and fellow European bottlers Coca-Cola Iberian Partners and Coca-Cola Erfrischungsgetränke to create a new listed entity Coca-Cola European Partners.
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