Former Stream Solutions boss mounts leadership coup on Paperlinx

Stream Solutions founder Andrew Price has led a group of Paperlinx investors calling for the paper merchant's chairman to step down and Price to be appointed at its head.

The shareholder group, which holds in excess of 5% of the company, served Paperlinx with the notice today (3 February), calling for an Extraordinary General Meeting to put the potential leadership coup to the vote.

Price said: "We met with the company this morning to express our concerns at the way the business is being managed and to invite the chairman, Mr Harry Boon, to resign and for Andrew Price to be appointed as a director.

"Mr Boon declined our invitation so we must now go through the process of requisitioning the company to call an Extraordinary General Meeting so that all shareholders can have their say," said Price.

Paperlinx executive general manager, Corporate Affairs, James Orr told ProPrint: "I can confirm we have been served with a notice. It was very late in the day and we really have not had a chance to work through it and consider it.

"We will obviously comply with our legal obligations, but, really, the directors have not had a chance to consider it.

"It is worth pointing out our interim results are due on 22 February and we are intending to give a fulsome overview of our results and the strategic review, but this notice has been served on us late in the day," added Orr.

He said the legislation required the EGM to be held within two months of the notice.

Price said: "It is quite rare in Australia to have an EGM called under these circumstances although given the dismal performance of Paperlinx in recent years, it's not unexpected."

Paperlinx's share price has fallen from a high of $5.37 in 2003 to its current trading levels below 7c.

Price added: "I see enormous opportunities for the Paperlinx business, if managed correctly, and I am prepared to take an active role in returning the company to profitability."

If the move is successful, it would mark a return to the paper industry for Price, who left Spicers Paper 12 years ago to establish print management company Stream Solutions.

As the former head of Stream - a multimillion-dollar Paperlinx customer - Price would bring extensive client-side experience to the global paper merchant.

He also spent more than 16 years in the paper industry, first at Edwards Dunlop and then at Spicers, which is now part of the Paperlinx Group.

Price left Stream Solutions last year. The company is part of publicly listed Toll Group, which bought Stream in 2006.