Usmanov threat to Corus chief
Russian steel magnate could oust James Leng. Clayton Hirst and Tim Webb report
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Your support makes all the difference.Alisher Usmanov, the Russian magnate who is the largest shareholder at Corus, is threatening to oust James Leng, chairman of the Anglo-Dutch steel company.
Mr Usmanov will attempt the coup, which could also claim chief operating officer Stuart Pettifor and finance director David Lloyd, if his nomination for a seat on the board is not passed at Thursday's annual shareholder meeting.
Farhad Moshiri, the UK representative of Mr Usmanov's investment group Gallagher, said: "Jim Leng's attitude is very confrontational. He has a blunder mentality. Corus needs a more cosmopolitan chairman. Corus needs less gloss and more substance."
Last week Mr Usmanov, who owns 13.5 per cent of Corus, nominated Aad van der Velden, a former manager at the steel company, as a director. But the Corus board, led by chief executive Philippe Varin, has urged shareholders to reject the nomination. UK-based shareholders have so far indicated their backing for the board.
One institutional shareholder said: "Mr Usmanov is a potentially disruptive influence. It comes just when Philippe Varin has steadied the ship."
He added that Mr Usmanov had a potential conflict of interest. Through Gallagher, he owns stakes in Russia's largest mines producing iron ore, used to make steel. There has been speculation, which Mr Usmanov has denied, that he wants to exert his influence to sign a supply contract with Corus.
Another shareholder dismissed the nomination of Mr van der Velden as "a bit of brinkmanship".
Shareholders' likely rejection of the nomination will put them and the Corus board on a collision course with Mr Usmanov. If Mr Usmanov does not secure the nomination, Mr Moshiri said he would call for an extraordinary shareholder meeting to "review the management, the strategy and the relationship between the UK plc and the Dutch supervisory board". However, Mr Moshiri stopped short of calling for the head of Mr Varin: "We support him. But he is only as good as the people around him."
Mr Usmanov's representatives have already contacted big investors, including the second- largest shareholder, the US fund manager Brandes, which controls 11.5 per cent. Further talks are to take place this week.
"Our plan was to be positive. However, Corus has decided to be very confrontational," Mr Moshiri said.
He was also critical of the directors' pay packages, which he said should be more performance related. He said the appointment of Mr van der Velden would help smooth relations with the Dutch part of the group, which last year blocked the sale of Corus's aluminium business. Mr Varin is not planning to restart the sale process.
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