Gulf Keystone replies to shareholder M&G after revolt, calls them "disingenuous"

The oil and gas company Gulf Keystone Petroleum (GKP) has issued a response to M&G recovery fund, and they're not too happy (release).

Yesterday GKP saw a shareholder revolt by M&G, which owns 5.1 per cent of the firm.

M&G believes the true value of the company’s assets will not be reflected in its share price until there has been a substantial strengthening of GKP’s board/

(The) potential directors have considerable experience of the oil and gas industry…they are therefore well placed to enhance the quality of governance.

Now GKP have responded, and they're unimpressed (our emphasis):

It is wholly disingenuous for M&G to state they are "seeking a meeting with new Chairman Simon Murray as soon as possible". Advisers to Gulf Keystone contacted M&G on 5 July 2013 by phone to arrange such a meeting, to which M&G agreed in principle. A follow up email to finalise the details of the meeting has yet to receive a reply.

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It is again disingenuous for M&G to refer to the proposed appointment of Jeremy Asher as an Independent Non-Executive Director. Under the Higgs Report definition of independence, Jeremy Asher is not independent, due to his interests in a significant shareholding in Gulf Keystone. The Company is surprised that M&G omitted this material piece of information from their press release.

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Gulf Keystone expects to publish its recommendation to shareholders shortly and in the meantime the Board strongly urges all shareholders not to vote, or fill in their Forms of Proxy, on resolutions relating to the four candidates until they have had an opportunity to review the Board's findings on each candidate.

Our reporter Michael Bow thinks it's no surprise that patience is wearing thin.