The activist investor agitating for change at eastern-European focused drinks maker Stock Spirits (STCK) has landed a heavy blow in the ongoing bout between the two.
Western Gate Private Investments, which holds nearly 10 per cent of the company's shares, has been backed by three large proxy advisers in its quest to get Alberto da Ponte and Randy Pankevicz voted on to the board at the upcoming 23 May annual general meeting.
Institutional Shareholder Services (ISS), Glass Lewis and Pensions & Investment Research Consultants have all backed Western Gate, which has also previously lobbied for a new chief executive. On the latter front, its desires were soon met when Chris Heath stepped down just two weeks after the motion for his replacement was put forward.
However, the three shareholder groups did not agree with Western Gate's other motion that Stock Spirits should put a moratorium on its merger and acquisition strategy.
Stocks' board has contended Western Gate's interests are compromised given it is acting for Luis Amaral, chief executive of Polish wholesaler Eurocash. It has said Eurocash is Stocks' largest customer but Mr Amaral has countered this by saying only 3 per cent of its revenues came from selling Stock Spirits goods, with the resultant impact on profits minimal.
The group subsequently issued a statement agreeing to hire extra resources to its board but said its nomination committee would propose candidates and that it would not accept Western Gate's candidates.
*This article was amended on 18 May in order to add a Stock Spirits announcement issued subsequent to publication.
