SkyePharma to get new management to team to tackle rebel shareholders |
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Mon, 06 Feb 2006 10:05
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LONDON: SkyePharma Plc. is planning to strengthen its management team to ward of a possible rebellion by its shareholders. According to news reports Monday, the company is set to engage Frank Condella, formerly head of European operations of Ivax Corp, a generic drug maker, as chief executive, and Ken Cunningham, who was heading biotech firm Arakis Ltd., as chief operating officer.
The counter measures come following investor North Atlantic Value had succeeded in removing chairman and founder Ian Gowrie-Smith last month and has now called for an emergency general meeting of shareholders to discuss the company's decision appointing Argeris "Jerry" Karabelas, a non-executive director, as chairman.
SkyPharma, a drug delivery firm, had been a takeover target and it had undertaken a strategic review following the bids. The company had described the bids as not good enough to be recommended to shareholders.
Besides Condella and Cunningham, the company had also sounded Dean Mitchell, director of U.S. company MGI Pharma, who was earlier chief executive at Guilford Pharmaceuticals, for a senior management position. He had said he would not want to come in.
Apart from North Atlantic Value, Swiss venture capital group HBM Bioventures has a stake in the company and it is likely to be an active shareholder as it is known for its strategies of using its expertise in managing and shaping companies in which it invests. There is also speculation that HBM may work out a deal for the company to merge with privately-owned Swiss pharma company, Mundipharma.
North Atlantic Value is working to nullify Karabelas' appointment. It is proposing Bob Thian, executive chairman of Whatman, a company in specialist paper business.
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SkyePharma chairman under siege from rebel investors 