The board of Boohoo Group PLC (AIM:BOO) has ramped up the rhetoric in its spat with Frasers Group PLC (LSE:FRAS) by pleading with shareholders to deny the Sports Direct owner’s takeover advances.
Reiterating its opposition to being acquired by Frasers and installing Frasers founder Mike Ashley as chief executive, Boohoo clarified its thoughts in an open letter to shareholders.
It read: “We are writing to you today to remind you why your vote matters and why the board is unanimously recommending that you VOTE AGAINST both resolutions.
“As well as considering the recommendation of your board, and making your own assessment of the true motivation behind Frasers' recent behaviour, shareholders should also note the position of ISS (International Shareholders Services) the leading proxy advisor, which, like your board, is recommending that shareholders VOTE AGAINST both resolutions.”
Boohoo and Frasers have consistently traded barbs amid the latter’s hostile approach to acquiring the struggling online fashion portal.
Yesterday, Ashley accused the Boohoo board of “gross mismanagement”. He wrote to Boohoo investors: “What has the board been doing to create such a catastrophic mess of your company, driving the share price down by 90% in five years?”
In November, Boohoo snubbed Ashley by appointing Dan Finley, the former boss of its Debenhams retail chain, to group chief executive.
“Frasers' demands form part of an ongoing campaign by Frasers which appears to be designed to destabilise Boohoo and disrupt your board's plans to unlock and maximise shareholder value,” Boohoo wrote in today’s open letter.
“The board is of the view that in pursuing this campaign, Frasers is acting only in its own commercial self-interest and not in the interests of other shareholders.”
Shareholders will have the ultimate say in a 20 December general meeting, when votes will be cast on the Frasers bid and Ashley’s appointment.