The Wall Street activist battling bus-to-rail operator First Group cheered a boardroom shake-up on Thursday after one of its preferred candidates to join the board was made chairman.
Coast Capital, which owns 10%, hailed the appointment of former Arriva Trains boss David Martin as marking a “new chapter” for First, which yesterday won the West Coast Mainline franchise.
Martin, replaces Wolfhart Hauser, who stepped down following pressure from Coast last month.
“His appointment marks, clearly, much needed change, and the beginning of a new and productive chapter in the company’s history, as mandated by investors,” Coast said.
Martin was one of seven names put forward by Coast in May to join the board.
He was thought one of the most credible of Coast’s boardroom candidates due to his 10 years running Arriva. Coast had also wanted former transport minister Stephen Norris to be chairman.
Martin’s nomination was then withdrawn after he decided not to run for the board — a stance he reversed today. Coast said it was “doubly thrilled” at the appointment because it had first nominated Martin.
Coast has been calling for a shake-up of First for months but it lost a shareholder vote in June to oust six members of the board.
First faced pressure that it didn’t have enough industry experience on the board.
First Group senior director David Robbie said: “Having followed a rigorous and formal process, and considered the views of our shareholders, we have secured an extremely experienced, high calibre and independent candidate with an extensive track record in surface transportation.”
Coast said it wanted three vacant board seats to be filled to help Martin.
Shares rose 5.4% gaining 6.2p to 120p.
