Next week, Petroceltic (PCI) shareholders will vote on extraordinary resolutions put forward by the driller's largest investor, hedge fund Worldview Capital, which holds a 29 per cent stake. Worldview is seeking the removal of chief executive Brian O'Cathain, in addition to the appointment of Worldview's founder, Angelo Moskov, and another nominee, Maurice Dijols. The Worldview insiders blame Mr O'Cathain for what they perceive as Petroceltic's stuttering performance. Petroceltic takes the view that the hedge fund is attempting to take control of the company through the appointments - and on the cheap. It's a claim that Worldview strenuously denies.
Earlier this week, the embattled chief executive received support from corporate governance bodies ISS Governance Services and Glass Lewis, while shareholder advisory consultancy PIRC advised shareholders to abstain from voting on the removal of the chief executive, but to vote against the appointment of Dijols and Moskov. It's now expected that Aberforth, Ingalls and Snyder, and Petroceltic's chairman, Robert Adair - who between them hold about a third of the company's shares - will vote against the resolutions. Petroceltic has also warned that the proposals could undermine its commercial interests in its key Ain Tsila gas co-venture with Enel of Italy and Algerian state-controlled Sonatrach.
