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Global Ship Lease, Inc. Message Board

  • foo_star foo_star Mar 12, 2014 5:58 PM Flag

    Saade a coup leader

    Per TW: "Coup comes to light
    Jacques Saade tipped as mastermind of crusade to unseat chairman of Global Ship Lease."
    I don't have access to the article.

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    • It says that an anonymous source said that Saade indicated he planned to request an expansion of the GSL board by two members (to be appointed by CMA CGM of course) and to oust Michael Gross as chairman at the next shareholder meeting.

      Note that CMA CGM has incrementally reduced its stake in GSL recently (down to 43% from 46%). Any thoughts on what is going on? A few possibilities I can think of:

      (I) set up the board to approve a buyout of GSL by CMA CGM (in which case, why reduce equity position?);
      (ii) get board leverage to renegotiate GSL charters at reduced rates (in which case reducing equity exposure makes sense); or
      (iii) business as usual, just with more input from CMA CGM by way of the board members.

      What do you guys think? Is there something nefarious going on here? Are GSL shareholders going to get squeezed? For those who think CMA CGM's equity holdings align it's incentives with ours, keep in mind that GSL's revenue is entirely derived from bleeding CMA CGM at above market rates.

      If Saade took control and tried to get charters renegotiated, would ordinary shareholders have any protections? Any thoughts are appreciated.

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