Minority shareholder Petrus Advisers continues to taunt Geneva-based Temenos after increasing its stake. It's again calling for a major shakeup without respect for the old guard.
Petrus Advisers is holding the feet of Temenos Chairman Thibault de Tersant to the fire. In a letter addressed to him on Monday, the activist investment firm demanded the Geneva-based banking software company tackle its problems more quickly and communicate more openly.
After recently increasing its holdings to just under four percent and becoming the fifth largest shareholder in Temenos, Petrus is demanding that a to-date neglected strategic review be conducted of Temenos' operations.
While the investor is «encouraged by the improving operating performance of the past two quarters» and gives Petrus confidence in the underlying structural market growth opportunities, there are still several issues causing concern.
«Black Box» Communication Method
Petrus took de Tersant to task over what it calls a «black box» communications approach in which issues are addressed behind closed doors, leaving it up to the markets to guess what direction the company is headed.
«The extreme levels of share price volatility that investors in Temenos have been subjected to are a significant concern and you must also be concerned for causing it. The stock has become almost impossible to own in a conventional equity portfolio as it gets pushed around like driftwood in the market,» the letter went on to say.
In addition to the lack of a strategic review, executing the exit of CEO Andreas Andreades «has been slow and is to blame for the situation shareholders find themselves in,» Petrus complained in the letter.
After the forced departure of CEO Max Chuard in January, Andreades assumed the role on an interim basis until the end of 2023 at the latest. Petrus contends the interim role cannot be extended over a long period and that Temenos needs a «full leadership reset.»
Rejecting Golden Handshakes
Petrus also demands shareholders be informed immediately if the called-for strategic review leads to negotiations with interested parties for the company. Should a deal transpire, Petrus won't accept «golden handshakes or unethical incentives for existing or failed executives.»
The activist also complains that transparency, the basis for sound corporate governance, has not been observed by Temenos.
In addition to Petrus, Helvetic Trust had also voiced criticism of Temenos' top management and called for the removal of Chuard and Andreades at the end of last year, as reported by finews.com. In contrast, Martin Ebner, who holds a stake of over ten percent in Temenos, is keeping a low public profile.
