Business
Response to Requisition
Response to Requisition.
About this update from Primorus Investments Plc
[{"type":"text","content":"\n CSS Stellar PLC\n25 June 2007\n\n\n\nImmediate Release 25 June 2007\n\n\n\n CSS Stellar\n\n Letter to Shareholders\n\n ('CSS Stellar' or 'the Company')\n\n\nIn response to the requisition for an extraordinary general meeting ('EGM') from\nDuncan Soukup, a non-executive director of CSS Stellar plc ('CSS Stellar' or the\n'Company'), which is due to take place on 3 July 2007, I am writing to you on\nbehalf of the board of the Company (excluding Mr Soukup) (the 'Board') to\nrecommend that all shareholders vote against the resolutions proposed by Mr\nSoukup to remove the existing Board members of CSS Stellar and replace them with\nhis nominees.\n\n\nDuncan Soukup\n\n\nThe Board considers that shareholders should be aware of the following:\n\n\n •Mr Soukup has not, since delivering his requisition notice on 22 May\n 2007, considered it appropriate to write to shareholders explaining his\n actions or disclosing any strategic plan for the Group should he be\n successful in gaining control of the board of CSS Stellar;\n\n\n •Mr Soukup's proposals amount, in the opinion of the Board, to an\n opportunistic attempt to wrest control of CSS Stellar without any attempt to\n make a formal bid for the Company;\n\n\n •Since his appointment to the Board in October 2006, the Board has\n experienced difficulties in establishing a working relationship with Mr\n Soukup, notwithstanding an improvement in the Company's performance over\n this period. Consequently, the Board has serious reservations that Mr Soukup\n will be able to maintain harmonious relationships with the constituent parts\n of the business so as to enhance the future prospects of the Group;\n\n\n •The new Board proposed by Mr Soukup does not have, from the information\n available to the Board, relevant experience in the sports or entertainment\n sectors;\n\n\n •Mr Soukup's track record as an activist shareholder is questionable. Mr\n Soukup was appointed as interim chief executive officer of Baltimore Capital\n plc (then Baltimore Technologies plc) on 6th July 2004 following a similar\n shareholder requisition process to take control of the board of that\n company. During the period following his appointment as chief executive\n officer, the share price of Baltimore more than halved in value and fell\n from £55 per share to £24 per share by 14 February 2005 (adjusted fo...