Takeover speculation

Small-cap fund managers are watching with interest the fight at listed platform services provider Praemium. A week after delivering 39 per cent EBITDA growth at the half-yearly result, chief executive Michael Ohanessian was abruptly terminated by the board.  To say that announcement went down badly with investors would be an understatement, with the stock falling from 44 cents the day before to as low as 32 cents on Wednesday.

But late Wednesday a group of shareholders including Ohanessian, Paradice Investment Management and Australian Ethical requested a general meeting to fire all four remaining directors led by chairman Greg Camm.

The group is being advised by well-known Melbourne lawyer Jeremy Liebler, who isn't known for being a shrinking violet.  

Camm has a mixed record, including in his previous job running Superpartners, sinking a rumoured $180 million into the platform on behalf of major industry super funds like CBUS and Australian Super, before selling it eventually to listed giant Link for a pittance.

Small-cap fundies watching the situation reckon the board ruckus is likely to set off long-rumoured consolidation in the platform space. They reckon any one of its rivals in IOOF, HUB 24 or One Vue could easily snap up Praemium in its current situation.