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Media Square

  • BY: Andrew Hore |
  • POSTED: 24/08/2009 |

Marketing services provider Media Square says that Prime Active Capital is no longer attempting to gain board representation.

AIM-quoted Prime Active Capital owns 21.5% of Media Square and wanted its executive chairman Peter Lynch to be appointed to the marketing company’s board at the AGM on 26 August. However, it has decided to withdraw its AGM resolution.

Lynch had met some of the senior management of the group and they stated that they backed the board in recommending that shareholders vote against his appointment as a director.

Media Square was highly acquisitive and ran into problems digesting all those acquisitions. It also built up large borrowings. New management, headed by executive chairman Roger Parry, is turning the business around and reducing debt through disposals.

According to Media Square, Lynch has said that he and former Media Square boss Jeremy Middleton “go out on the lash” together. Middleton denies he has any professional involvement with Lynch.

Tony Gill has a separate 16.1% stake in Media Square. Gill owns 10% of Prime Active Capital but he denies acting in concert with Lynch. Gill claims to have bought the shares after reading an article in the Investors Chronicle.

Shares in Media Square recovered 1.25p to 17.25p each, which values the company at £5.56m.

The Prime Active Capital stake is worth a lot less now than when it was acquired because of the sharp fall in the Media Square share price over the past two years. The share price was the equivalent of more than 300p at the beginning of 2006 – after taking account of a share consolidation - and was still over 200p during most of 2007. The share price was around 100p at the beginning of 2008.

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