Coast Capital who have a 9.7% stake in FirstGroup wants to replace several board members including the chairman and chief executive.
The activist investor accused the management team and said they have made several mistakes and that they “don’t know how to manage the business.”
James Rasteh, chief investment officer of Coast, told BBC Radio 4’s Today programme, “The idea presented by the chairman and the CEO that rather than even attempt to turn around their loss-making UK business, even though it has been their bread and butter for decades … is a clear admission that they don’t know how to manage the business.
“We’re trying to fix a UK-based business, made up of UK and US-based assets, most of which need turnaround attention, and there isn’t a single board member that has prior and proper experience in the industry.”
Coast Capital will try and replace six board members on Tuesday at a shareholders meeting, along with seven of their own hand-picked team, including former transport minister, Steven Norris.