By Rebecca Evans
RIVKIN Financial Services (RFS) stakeholders continue to jostle for control, with talks of mergers and takeovers rife and corporate raider Farooq Khan calling for the dismissal of director and chief executive officer Alan Davis.
The latest move by Khan, who filed a defence and cross-claim action against proceedings commenced in the Federal Court of Australia by RFS late last month, follows an unsuccessful application to the Takeovers Panel by Sofcom.
Sofcom, which Khan is chairman of, alleged that the purchase of former chief Rene Rivkin’s 7.3 million shares in RFS by the Alan Davis Group, as well other transactions involving Network Limited and Cole Kablow Superannuation were in fact a “share swap” between entities that appeared to have pre-existing relationships.
“The company opposes any contemplated merger whether by takeover or otherwise between Rivkin Financial Services and Network Limited,” Sofcom said in a statement to the Australian StockExchange .
The cross-claim by Sofcom advocates RFS dispose of the shareholdings by Network, Cole Kablow and the Alan Davis Group, or buy the shares back at the same price for which they were issued.
The litigation against Khan’s companies Sofcom, Fast Scout and Altera Capital has come about after Khan acquired a substantial holding in RFS and unveiled his intentions to oust the board and instate his own crew by requisitioning a meeting of shareholders on July 5.
This move was met with resistance on July 13 by Davis who denied contravening the meeting in accordance with section 249d of the Corporations Law.
Davis promptly instigated legal proceedings against Sofcom, Fast Scout and Altera Capital in the Federal Court on July 14. Sofcom dismissed this as a “tactical response … utterly devoid of merit”.
Last week, upon receiving notice of Sofcom’s latest legal manoeuvre, Davis assured shareholders RFS was prepared to defend itself against any cross-claims.
