LONDON (SHARECAST) - Shares in investment firm LMS Capital jumped 10% after news it would not be broken up, despite demands from a substantial minority of shareholders, including its chairman.
LMS said that shareholders holding around 35% of the firm's share capital had called for the company to be dismantled in the short term.
The firm said having considered the request "and taken independent financial advice from Quayle Munro Limited, the directors, by a majority of six to two...do not believe that a break-up of the company at this time would be in the best interests of shareholders as a whole".
It said LMS' revised strategy to pursue direct investments in growing, profitable businesses primarily in the energy, consumer and business services sectors, had seen significant progress since August 2010, including owned EBITDA increasing 42% for the six months to the end of June.
The board has now appointed an independent committee comprising the non-executive directors and excluding its chairman, Robert Rayne, to consider its next moves in relation to the break-up demand.