New York (HedgeCo.Net) – New York hedge fund Elliott International’s quest to place two members of its team on the board of New Zealand-based Telecom has officially come to an end when they failed to win the bid at the annual shareholders meeting today.
Elliot had nominated Mark Tume and Mark Cross in August, after poor performance by Telecom prompted their desire to shake up the board in pursuit of higher returns.
"In our view, Telecom’s performance languishes behind that of other key telecommunications players in the international market, and we believe this is partly due to an unclear and outdated strategy. Shareholders and customers remain dissatisfied with Telecom’s progress," Portfolio Manager James Smith had said.
Elliot is well known in the states for taking over faltering companies and engaging in proxy battles with the intentions of restructuring.
In 2006, Elliot proposed that Telecom be split into two separate entities, with each company having its own listing on the stock exchange. Telecom Chairman Wayne Boyd came to his company’s defense, saying that a split was not in the best interest of the shareholders.
Julie Scuderi
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