Thursday, 8 January 2009

Constellation to seek place on Gladstone's Board

It would appear that rebuffed bidder Constellation does not plan to let Gladstone continue unchanged....

"The Board of Gladstone announces that, on 6 January 2009, it received a letter .... requiring the convening of a general meeting pursuant to section 303 of the Companies Act 2006 (the 'Act') for the purpose of considering a resolution to appoint Mark Leonard, Constellation's chairman and president, as a director of Gladstone."

Clearly the current Board will not agree willingly to this - but it will be interesting to see if the major shareholders see this as a way of generating value for shareholders.

However, looking at Constellation's and Gladstone's markets, there is a major overlap with Constellation's Jonas subsidiary which supplies systems in similar leisure markets to Gladstone (albeit Jonas doesn't appear to have much market penetration in the UK). Thus the expected argument from Gladstone about "conflicts of interest" and "competitive information" are likely to ring true with many investors......

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