Former directors bid for control of Misys

Three former directors of Misys say they are seeking to take over management control of the UK banking systems vendor in a bid to prevent shareholders selling the company on the cheap.

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Former directors bid for control of Misys

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The three former directors - ex-finance director Ross Graham, former head of the vendor's financial services division Mike O'Leary and ex-group managing director John Sussens — claim they have the support of institutions holding 25% of Misys shares for their proposed "management walk-in" and have written to the company's independent directors outlining their plan.

They say the plan is an alternative to any possible offers that are received for the company or its businesses and that fall short of delivering fair value for shareholders.

The group say there is "significant value" within the business and "their long professional experience and deep knowledge of the company and its markets" make the team uniquely qualified to provide an alternative to any possible offers".

They say they can provide Misys with an "alternative to any possible offers that are received for the company or its businesses and that fall short of delivering fair value for shareholders".

The proposal involves the group assuming senior management control of Misys and implementing a strategy aimed at boosting the value of the company's three divisions before demerging them or selling them within two years.

The strategy includes operational separation of the company's three businesses, re-incentivisation of divisional management and employees and cost reduction through de-centralising the management.

In return the three former directors would get normal remuneration packages and would be granted an option with a two-year life over two per cent of the company.

The Misys board meets this week to decide on takeover offers it has received.
The company's independent directors and shareholders are considering a £1bn MBO proposal led by chief executive Kevin Lomax and a separate offer from Permira and General Atlantic Partners. Fintech giant Sungard has also expressed an interest in the bidding for the company. Misys' former banking systems boss Ivan Martin is also rumoured to be in talks with private equity groups about a potential £1 billion offer.

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