Lucas to soothe investors

LucasVarity is to embark on a major charm offensive among City institutions following the shareholder rebellion that thwarted the group's attempt to shift its primary stock market listing and headquarters to the United States, writes Michael Harrison.

A board meeting is due to be held later this month to discuss how to go about fence-mending with UK investors. One LucasVarity board member said: "Clearly there are relationship issues between the company and its shareholders in the UK that have to be addressed."

The move to the US was blocked after a group of UK institutions holding 15 per cent of LucasVarity shares, led by Schroders, voted against the board. Other dissenting institutions were Legal & General, Standard Life, Norwich Union and Prudential.

LucasVarity insists that the position of Victor Rice, its chief executive and the main architect of the plan, is not under threat.