cottee comeback

http://www.theaustralian.com.au/business/companies/cottee-picks-up-momentum-for-reinstatement-as-nexus-chief-executive/story-fn91v9q3-1226173547618


Wonder if some of those insto investors pledging support for RC helped the shares up yesterday? Might be something ASX/ASIC should have a look at.

Text:
Cottee picks up momentum for reinstatement as Nexus chief executive
by: Matt Chambers From: The Australian October 22, 2011 12:00AM

RECENTLY resigned Nexus Energy managing director Richard Cottee says the company's biggest shareholder is trying to force his reinstatement and the removal of up to three directors on the six-member board, including chairman Michael Fowler.
In a dramatic development in the stoush between Mr Cottee and the Nexus board, London-based M&G Investments has started the process for an extraordinary meeting to make the changes, Mr Cottee said.

Mr Cottee, who resigned in September after a dispute with the board, said about two-thirds of the institutional shareholders, or 32 per cent of the total, had indicated to him their support for his return as managing director.

This gives a good platform for success, given retail shareholders' propensity not to vote at extraordinary general meetings and, for those who do vote, the fact that Nexus shares slumped after Mr Cottee resigned.

Nexus, which is involved in discussions with third parties on funding for its Crux project in Western Australia, would not discuss Mr Cottee, beyond saying it had not heard from M&G, which has a 14 per cent stake.

Mr Cottee, who ran Queensland Gas Company before it was taken over by BG Group in 2009, said he would only return to Nexus if the board had confidence in him and if it was in the interests of shareholders as a whole. For him to have confidence in the board, executive chairman Michael Fowler would have to step down, as would executive director Ian Boserio.

The extraordinary meeting being pushed by M&G would also seek the removal of Michael Arnett if he had been acting as an executive director.

M&G could not be contacted last night.

The resignation came over a failed deal on the Echuca Shoals gasfield, which is near Crux. It is believed Mr Cottee had struck a deal to bring in a partner, but the board would not back it.

At the instigation of M&G, Mr Cottee and Mr Fowler were due to meet on Monday, Mr Cottee said.

Yesterday, Nexus shares rose 1.5c, or 9 per cent, despite retail investors being none the wiser about the push by the institutions to reinstate Mr Cottee.

Mr Cottee in a report yesterday had raised the prospect of coming back but there were also rumours that Nexus was close to sealing a deal on Crux and it could be announced as early as next week.

An extraordinary meeting can be called by more than 5 per cent of the shareholders, meaning M&G, with 14 per cent of Nexus, is well within its rights to do so.

At Nexus's annual meeting scheduled for November 17 in Melbourne, Mr Fowler is up for re-election.