Board By Claudia Schuffner and Ana Paula Ragazzi | River
Discovery Capital Management, which has 6.1% stake in HRT, leads a group of shareholders who want to elect three members of the board of oil company founded by geologist Marcio Mello. On Friday, these investors have asked the company to adopt the cumulative voting for the election of the board at the meeting on 29 April. As anticipated yesterday Value PRO service, real-time information of value, being appointed to the board François Moreau, former BG and governance expert, Oscar Prieto, former Comgás, BG, BP and vice president of PanAmerican Energy , and Stefan Alexander, former GLOBOPAR and Ne t.
Just last night HRT issued a notice informing the market about the request voting by funds managed by Discovery and the Quantum Partners. According to sources consulted by the value, these investors would already have the support of other shareholders of the company as Southeastern Asset Management, MSD Capital (Michael Dell's business), Highfields Capital, Onyx Equity Management, Leblon Equities and two initial shareholders (Michael Vitton and Mathew Goldsmith).
In cumulative voting, all nominees can be voted individually and shareholders can distribute its shares among several candidates.
To date, Discovery and Quantum publicly requested not to other shareholders proxies in favor of their candidates, which suggests that already gather support for electing members of the board of HRT. The request for voting is the first battle of what can be a war to increase in oil governance founded by Mello. Since last year has increased exponentially shareholder discontent with the HRT management Mello, considered a great geologist but not a good administrator.
Among the reasons for discontent, and the lack of significant discoveries that allow monetizing the gas discovered in the Amazon, capital expenditures are considered high for exploratory any results. This year HRT makes biggest bet to begin drilling in Namibia, which shall consume the £ 1 billion that still have the box.
The proposed high values ??as remuneration not helped. For 2013, HRT proposes flat fee of £ 8.25 million for the board, equal to salary of U.S. $ 137,500 for each. In total, the proposal is $ 44.3 million, including cash and stock. Are still proposed £ 35 million in the case of dismissal or retirement of directors.