US activist lashes out as it tries to bring its team in at FirstGroup

The US activist investor scheming to replace most of the board of FirstGroup fired its next salvo in the battle on Tuesday.

Coast Capital Management, which has a 10% stake, wants to shake up First by removing six directors and replacing them with seven of its own, including former UK transport minister Steven Norris.

A shareholder vote has been called for June 25. First has attacked the plan, saying Coast’s suggested directors aren’t up to the task.

Coast CIO James Rasteh says: “Any business would be lucky to be able to call on the services of even one of these candidates.

“The fact that Coast has gone to the trouble of putting together this constellation of talents and skills provides the clearest possible testimony of its commitment to FirstGroup."

He added: “The company’s slanderous ad-hominem attacks are indicative of an unprofessional chairman and unprofessional and unqualified CEO whose terrible track record leaves them with only slander to deal.”