A PYMNTS Company

L&G To Vote Against Capricorn & NewMed Merger

 |  January 16, 2023

Asset manager Legal & General plans to take the rare step of voting to oust energy group Capricorn’s senior leadership and halt its planned merger with NewMed, according to a company document seen by Reuters.

Capricorn shareholders will vote on the NewMed deal on the morning of Feb. 1 before voting in the afternoon on activist investor Palliser’s proposal to overhaul the board. The deal is opposed by Capricorn’s three biggest investors, who say that it undervalues Capricorn.

Investment manager Madison Avenue, Capricorn’s biggest shareholder, has already cast its vote against the board and plans to vote against the NewMed merger, managing partner Eli Samaha told Reuters.

The timing of the shareholder votes means that any resulting shake up could leave a new board bound by the earlier vote on the deal – a point that has come in for criticism from Palliser and Legal & General Investment Management (LGIM).