Interserve needs a good plan B, given the rebellion to its current plan | Nils Pratley | Business – Business Article

The board of Interserve, the large but ailing government contractor, knew it would struggle to persuade shareholders to vote for their own demise, which is an almost-accurate description of the proposed £480m debt-for-equity rescue in which the banks would take control and current investors would be diluted to just 2.5% ownership. Sure enough, the rebellion is on. The New York-based hedge fund Coltrane was first out of the traps last week, declaring it wants to vote out Interserve’s entire board…

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Interserve’s shareholders may have to swallow the fudge | Nils Pratley | Business – Business Article

Welcome to the new era of outsourcing, Interserve shareholders. You will be wiped out, more or less, via a £480m debt-for-equity swap in which the banks take control. You won’t like it, but please don’t bother voting against the rescue. If you do, your board intends to adopt “alternative plans” to force through the financial restructuring anyway. Shareholders may think this is unfair – and the biggest investor is demanding a new board of directors – but they cannot be…

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