Care First investors want chief reinstated
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Your support makes all the difference.Institutional investors in Care First, the UK's largest nursing home group, are lobbying for the reinstatement of Chai Patel, who quit as chief executive a fortnight ago after a bust up with the group's chairman. It is understood that Mr Patel would consider rejoining the company only if Keith Bradshaw, executive chairman, and Ron Reid, finance director, resign.
Institutions believed to be concerned about Mr Patel's departure include Morgan Stanley, Fidelity, London & Manchester, Abbey Life, National Provident and Invesco, which collectively represent around 18 per cent of Care First's shares.
Mr Patel, whose Court Cavendish healthcare group merged with Mr Bradshaw's Takare last October, is believed to have walked out because of interference from Mr Bradshaw over strategic decisions. A source close to Mr Patel said: "They just didn't share the same vision and values. Mr Patel had no freedom to act. The amount of cross-checking of his decisions was stifling." Mr Bradshaw apparently refused to specify to Mr Patel when he would step down to a non-executive role. Mr Patel wants Mr Bradshaw and Mr Reid, both originally from Takare, go completely before he considers returning.
Many of the institutions who are having meetings with Care First over the next few days regard Mr Patel very highly. One leading fund manager said yesterday: "I very much want to see the reinstatement of Chai Patel. We bought the shares because we believed in his style of management." The fund manager called on other institutions to make their views plain: "It it is now time for the majority owners to have their view."
Takare has been one of the worst performers in a tough sector. Shares in the company have lagged the market by 74 per cent in the last five years.
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