TO SELLOUT or not to sellout or better still SWAP

Simon Cawkwell

LONDON (AFX) - The boardroom row over fund raising at Tottenham Hotspur PLC,
the troubled Premiership football club, claimed its second casualty in little
over a week on Friday night when non-executive director Howard Shore resigned.
Shore, who chairs investment bank Shore Capital Group PLC, said in a
statement that the cash raising issue led him to quit the board.
It has emerged over the past week that the Tottenham board is split over how
to raise cash to strengthen the playing squad.
The preferred route of executive chairman Daniel Levy, who currently owns
29.9 pct of Tottenham's shares through Enic, is an issue of debt. However, Shore
wanted the board to agree to an equity fund raising.
"As a Tottenham supporter, I have in my capacity as an independent
non-executive director always sought to act in the best interests of the club
and its shareholders," said Shore.
"This is of particular importance in a case such as this where there is a
substantial shareholder with such strong representation on the board.
"I have made clear my views as to how best these interests shall be served,
particularly in relation to fund-raising which is after all my area of
expertise. Regretfully, these views are not shared by the chairman and parties
associated with Enic. I therefore now consider that I have no option but to
tender my resignation."
Shore's departure came eight days after the resignation of finance director
Paul Viner. He was replaced by Matthew Collecott from Enic.
However, Shore stressed there is no short-term financial crisis or urgent
need for additional working capital at Tottenham.
"I also believe that in the right circumstances there could be considerable
appetite from third parties for a new equity issue made available to all
shareholders on a pro rata basis," he added.
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Its interesting to note Acquisitor appointed Shore Capital despite the fact Howard resigned as an NED at Tottenham Hotspur plc where David Buchler is Deputy Chairman, there was clear disagreement at Spurs between Howard & rest of the board, its good to see previous disagreements have been set aside for the moment at least.