CML's major shareholder backs Scottish Pacific

The board of finance company CML Group has confirmed its unanimous support for Scottish Pacific's proposed scheme or arrangement, in the face of Consolidated Operations Group's bid to keep its own scheme proposal alive.

In a statement yesterday the directors said CML's major shareholder First Samuel Ltd, which holds 17.7 per cent, had advised that its intention was to vote in favour of the Scottish Pacific scheme in the absence of a superior offer.

A shareholder meeting to vote on the scheme has been set for May 11.

On Monday, CML announced that it had terminated a scheme of implementation agreement with COG and entered into a deed with Scottish Pacific, which made a higher offer. The Federal Court then made orders cancelling a meeting of CML shareholders in respect of the proposed scheme of arrangement with COG.

COG responded by saying it disputed CML's entitlement to terminate the agreement between the two parties and that it was prepared to match Scottish Pacific's offer.

A complicating factor is that COG has a 17.4 per cent shareholding in CML. With support from other shareholders it may have enough for a blocking stake.