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UK online auction group ATG's top investor presses for chair ouster, sale

By Reuters News

Oct 26 (Reuters) - Auction Technology Group's ATG.L largest shareholder on Monday called for the removal of the British online auction operator's chair and a strategic review of the company, including a possible sale.

Here are some details:

  • FitzWalter Capital owns 27.2% of ATG and has proposed replacing Chair Scott Forbes with fellow ATG director Richard Campbell-Breeden

  • The activist investor said Campbell-Breeden would lead a strategic review to evaluate options, including a share buyback and a potential sale of ATG

  • FitzWalter argued that ATG's US-focused business, which contributes more than 80% of revenue, is being held back by its UK listing and London headquarters

  • "A principally US business is best overseen from the US ... ATG is likely to be more valuable to US private equity and strategic buyers," London-based FitzWalter said

  • FitzWalter ruled itself out as a potential bidder and said it would provide irrevocable undertakings to support any bidder recommended by ATG's board

  • Earlier this year, ATG had rejected a series of takeover approaches from FitzWalter, citing undervaluation

  • ATG did not have an immediate comment on the latest developments

  • Company's shares fell as much as 2.4% to 467.8 pence in early trading before paring losses to trade down 0.5% by 0828 GMT

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