Trashing things wherever he goes

James Baillieu threatens Updater with legal action

It's expected to put a $US1 billion or "unicorn" valuation on the company. And Updater has proposed to simultaneously conduct a share buyback, allowing Australian investors who bought in, when it was ASX listed, the chance to divest from what is now an illiquid, US-domiciled private company.

But in recent days, the company has been ringing shareholders informing them of a threat of legal action against it. This is courtesy of seriously combative Melbourne investor James Baillieu, who has a $20 million stake.

Inbetween battling BidEnergy, IRexchange, and the broker formerly known as Baillieu Holst, Baillieu grew suspicious about the raise's progress. Over the weekend, he sought a detailed explanation from MD David Greenbergabout why its taken so long, while foreshadowing the commencement of legal action to give him access to the company's books if he wasn't satisfied.

Updater understood this as material information that must be quickly conveyed to investors, days away from its deadline. Of course, it's hard to imagine the VC types it was courting being thrilled with this development.a

See the irony? Baillieu's approach over the weekend was prompted by his fears there was a problem with the raise. Well, now, maybe there is!

.....and a little more in AFR