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The Guardian - UK
The Guardian - UK
Business
Simon Neville

Lonmin shareholders vote in favour of rights issue at tense general meeting

Lonmin shareholders have approved the company's plans for an $817m cash call to patch up the damaged balance sheet following strikes at its South African mines which left several workers dead.

Helpfully, the company reported that on the recommendation of one shareholder, the Chairman, Roger Phillimore, called for a minute's silence at the meeting in memory of the tragic violence.

However, they failed to mention the tension in the room in which shareholders grilled the board of their failures to deal with the mining unions sufficiently, to avoid the strikes which crippled business.

These included Josie Rowland, widow of Tiny Rowland who build Lonrho, which eventually became Lonmin.

She criticised the board for not showing enough drive and being unable to remain abreast of union issues.

The company's biggest shareholder, Xstrata with 25% due to an abortive takeover a few years earlier, had threatened to vote against the rights issue unless there were significant changes to the boardroom.

In the end, Xstrata voted for the proposal, however, it is unlikely to be the end of Lonmin's troubles.

Shares closed the day up 43.7p, 9.3%, at 515p.

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