Sage seat offer to defuse Shemesian standoff
18th September 2008, 6:00 WST
Tony Sage. Picture: Sharon Smith
Cape Lambert Iron Ore and its biggest shareholder, Russian steel giant Evraz, are in talks to defuse a standoff over board representation in what is shaping as a crucial step in the WA miner’s attempt to fight off disgruntled investor Mick Shemesian.
It is understood Evraz is considering a conditional offer from Cape Lambert executive chairman Tony Sage of a board seat in return for not interfering in the WA company’s immediate plans, including a $100 million capital return as well as a controversial plan to buy a Sierra Leone iron ore project.
Evraz has requested more information on the Marampa hematite project in a sign that it may be willing to agree to Mr Sage’s terms.
The appointment of an Evraz representative to the Cape Lambert board is likely to be viewed as a vote of support by the 19.9 per cent stakeholder for incumbent directors led by Mr Sage, and against a proposal by Mr Shemesian for Cape Lambert’s board to be dumped and replaced with his own nominees, including Melbourne identity Leo Khouri and Perth lawyer Martin Bennett.
Evraz yesterday refused to comment on Mr Shemesian’s move beyond saying it was considering it.
“As the largest shareholder in Cape Lambert, Evraz sees itself as a continuing strategic investor with an active role in developing opportunities and growing the company,” Evraz said.
Cape Lambert and its lawyers are reviewing a demand from Mr Shemesian that the WA miner give a written undertaking by this evening not to enter into the Marampa deal without shareholder approval, or face court action.
http://www.thewest.com.au/default.aspx?MenuID=3&ContentID=98374
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