* gains a stake in Cape LambertFont Size: Decrease...

Shemesian gains a stake in Cape LambertFont Size: Decrease Increase Print Page: Print Matt Chambers | September 17, 2008
DUBAI-BASED prospector Michael Shemesian has acquired an 11.5 per cent stake in Cape Lambert Iron Ore and has launched a campaign to remove managing director Tony Sage and add Melbourne trader Leo "The Gun" Khouri to the board.

Mr Shemesian's stake was revealed yesterday and his company, Power United, has called a shareholder meeting for October 15 to try to block Cape Lambert's deal to buy into iron ore ground in Sierra Leone.

It also wants to replace three of the four current directors with four of its own, including Mr Khouri.

The move adds to the complexity of the struggle for control of $300 million cash held by Cape Lambert, which has a market value of just $187 million and also has Russian steelmaker Evraz as its biggest shareholder.

"The board is not seeking approval of shareholders for the (Sierra Leone) investment and it appears that the board is seeking to commit the company to a significant investment, which in the shareholder's opinion is being driven more to change effective control of the company," Power United directors Michelle Clark and Antony Bryans said in a letter to shareholders.

Mr Sage has said he expects Evraz to lodge a bid for his company to direct the $300 million into financing development of the Cape Lambert iron ore project, which Cape Lambert Iron Ore recently sold and in which Evraz has since grabbed a 75 per cent stake.

The purchase of a 30 per cent interest in Marampa iron ore project in Sierra Leone would be through newly issued shares and would dilute Evraz's 19.9 per cent stake in Cape Lambert.

Cape Lambert issued a statement saying shareholders should take no action with respect to the meeting until the company had legal advice on whether the notice and director nominations were valid.

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