3i, after the purchase of shares that increased Richard Bramson's stake in the private equity group, is under fire for the current strategy undertaken to bring it out of the doldrums. Bramson has been known for forcing management changes in the companies he invests in.
The share increase was done through Bramson's investment company, Sherborne at the cost of GBP105 million or US$159 million. Jefferies was the broker in the purchase of the shares and the current shares owned by Branson was at 4.2% of total shares.
This is just one aspect of the strategy by 3i, with a change in CEO, deep job cuts as well as retrenchment of its North European roots to appease the growing discontent of shareholders for the poor performance of its share prices and weak buyout business results.
For its part, Sherborne commented that it is studying whether to keep or sell all or part of its stake in 3i or even add to the existing shareholdings.
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