Electra Challenges Sherborne's `Unsubstantiated Claims'

Electra Private Equity Plc, a London-traded investment fund, said a shareholder challenge to management and the company’s performance “contains unverifiable statements.”

“Exuberant and unsubstantiated claims are no substitute for Electra’s consistently superior track record,” Roger Yates, chairman of Electra, said in a statement today. Investors should reject the shareholder’s plans to revamp the company, Electra said.

Last week, Sherborne Investors Management LLC, which is headed by Edward Bramson and owns about 20 percent of Electra, wrote to investors saying a change in approach could increase shareholder value by more than 1 billion pounds ($1.6 billion). Bramson has called a shareholder vote seeking representation on Electra’s board, following which there would be a strategic review of the company.

“Against any sensible industry benchmark, Electra has delivered exceptional performance over the long term,” the company said, adding investors should reject Sherborne’s proposals, which will be voted on at a meeting on Oct. 6

The letter “merely serves to highlight a lack of understanding of the Electra business and its fundamental investment proposition and why Sherborne’s nominees, Mr. Bramson and Mr. Brindle, should not be elected” to Electra’s board, the company said today.

Brindle is a former chairman of Sherborne’s investment companies.

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