One og the more interesting corprate plays on the ASX atm:Progen...

One og the more interesting corprate plays on the ASX atm:

Progen investors revolt 25/11/2008

AGGRIEVED shareholders in troubled drug developer Progen have knocked back the directors' remuneration report but failed to achieve the boardroom purge some were seeking.

In July, the Brisbane-based company announced it was halting the development of PI-88, its key liver cancer drug, which had entered phase III clinical testing. The news sent the company's share price into a tailspin.

At Progen's annual general meeting yesterday, the remuneration report was rejected by 50.3 per cent of shares voted but chairman Malvin Eutick and Robert Williamson were returned as directors with about 60 per cent approval.

Along with three other directors, they face motions calling for their removal at an extraordinary general meeting that will need to be held in the next 10 days. The push is being led by shareholders hoping to install a team of directors that includes Melbourne biotechnology veteran Bob Moses.

To head off shareholder anger, Dr Eutick committed the board to either strike a merger or acquisition deal that will give shareholders at least $1.10 a share in value or return the entire capital of the company — about $70 million or $1.10 per share — to shareholders. The company has committed to reach an outcome within 45 days.

Shares in Progen surged 20.5¢ to 80¢.

http://business.theage.com.au/business/progen-investors-revolt-20081124-6g5z.html