F&C revolt ousts Nick MacAndrew

Shareholders in fund manager F&C Asset Management yesterday ousted chairman Nick MacAndrew and replaced him with Edward Bramson, founder of activist shareholder group Sherborne Investors.

They also voted at an extraordinary meeting to remove independent director Brian Larcombe from the board and appoint Bramson's associates, Ian Brindle and Derham O'Neill.

After the meeting Bramson said: "There is no specific plan. One needs to be developed. A lot of information from outside (the company] we do not have." Sherborne, F&C's largest shareholder, with an 18 per cent stake, called the EGM in December, and had criticised F&C's strategy and acquisitions.

F&C, which employs about 130 in Scotland, had responded that the group had turned the corner in performance and funds under management, and claimed Sherborne had failed to outline an alternative strategy.

Bramson was backed in his boardroom campaign by Aviva Investors, the fund management arm of the insurance giant that holds 6.5 per cent of F&C.

David Lis, head of UK equities at Aviva Investors, welcomed the outcome of the EGM. He said: "We are extremely pleased with the strong level of support for Sherborne and now look forward to continued engagement with the F&C board and the realisation of the inherent value we believe exists in this company."

F&C's management under MacAndrew and chief executive Alain Grisay had been backed by the asset manager's second biggest shareholder, Dutch insurer Eureko, with 10.5 per cent.

More than 70 per cent of voting shareholders backed Bramson, while close to 65 per cent voted for MacAndrew's removal.