Novator fails in bid to change Elisa Board

Icelandic company gears for new fight in March

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The Icelandic investment company Novator failed in its bid to make changes on the Board of Directors of the telecommunications service provider Elisa at an extraordinary shareholders' meeting in Helsinki on Monday.
     The meeting, convened at the insistence of Novator, the largest single holder of Elisa stock, attracted an unusually large amount of interest, with 42 per cent of all of the shares of the former Helsinki Telephone Company represented at the Helsinki Ice Arena. About 2,000 owners of Elisa stock showed up in person, while wheelbarrows were needed to carry in all of the proxies.
     The shareholders first voted on a proposal to change the company's board completely. The Icelandic proposal got the support of 30 million voting shares, while keeping the present board was backed by 35 million voting shares.
     
The main owner of Novator, Thor Björgólfsson, told Helsingin Sanomat before the vote that he would measure his support in the first round. If his share were to rise to between 40 and 50 per cent, he would seek seats on the board.
     His support fell within the specified range, but it was not enough to unseat the whole board. Apparently with this in mind, he made an alternate proposal to replace two people on the board - Chairman Pekka Ketonen and board member Risto Siilasmaa.
     The change caused something of a stir. Many of the proxies from absent shareholders specified taking a stand on changing the entire board - not just two members.
     The change in the proposition was seen as an attempt by Novator to nullify a proportion of the proxies.
     
Novator's other proposal, to change the company's articles of association, sparked only a few comments, and it was not brought to a vote.
     Although Novator lost this round, Thor Björgólfsson is not giving up. After the vote, he said that he got more support for his proposals than he expected. "Almost 50 per cent voted with us".
      The next round takes place in March, when Novator plans to reintroduce its proposals at Elisa's next scheduled shareholders' meeting.


Previously in HS International Edition:
  Icelandic investor attributes Elisa uproar to "nationalism" (7.1.2008)
  Director of Novator Finland amazed at Elisa Board´s course of action (11.1.2008)
  Icelanders offer compromise in initiative on Elisa changes (10.1.2008)
  Foreign shareholders flock to Elisa extraordinary shareholders´ meeting (21.1.2008)

Helsingin Sanomat