Disgruntled Wool Equities shareholders say they have enough support to call a special meeting in an attempt to oust the board.
The group's spokesman, John Shirtcliff, said yesterday it had achieved the necessary support of 5 per cent of shareholders.
He expected it would be held early in
the new year at a place to be determined by the listed company.
The group wanted to dismiss the board and elect new directors because it had no confidence in the judgment of the present directors, Shirtcliff said.
His group has previously asked the NZX to look into share trading by former Wool Equities chief executive Mark O'Grady and chairman Richard Bentley, and whether the company had complied with disclosure rules.
Shirtcliff said yesterday there was concern about whether the company should have got shareholder approval to buy a stake in research company Canesis in 2004 for $10.9 million, when Wool Equities' market capitalisation was $11.1 million.
Wool Equities has said it complied with all legal and NZX listing rules. The company has a strong wool grower shareholder base. Farmers received shares when Wool Board reserves were carved up in 2003.
Meanwhile, Karios Holdings - which involves O'Grady, and acts for the AgResearch and Direct Capital private equity-owned BioPacific Ventures - said yesterday it now had acceptances entitling it to just over another 15 per cent of Wool Equities. At 90c a share, that is a cost of more than $3.1 million.
O'Grady said yesterday he was delighted at the result, which has come despite Shirtcliff's group urging shareholders not to sell to Karios.
Karios has previously said it may keep the offer open as late as tomorrow, but it does not plan to go higher than a 19.9 per cent holding.
BioPacific is said to be mostly interested in Wool Equities' Keratec business, which aims to commercialise wool proteins in cosmetic and health applications.
