Power struggle in Esprit boardroom

Esprit Telecom, an independent European carrier, has been forced to call an extraordinary general meeting after a power struggle erupted in its boardroom.

Shareholder Apax and Warburg, Pincus, wants Esprit Telecom founder Walt Anderson to be removed from his post as director. Anderson lost his chairmanship of the company on 5 October by a vote of the board.

However, Anderson, who is attorney-in-fact with another shareholder, Walt Anderson and Gold & Appel Transfer, is biting back by calling for the sacking of four existing board members, including chief executive David Oertle, a former Sprint and Telstra executive who was recruited to the post by Anderson last year. Anderson also wants the removal of any director who was appointed between 5 October and the EGM.

Esprit has been struggling in the telecoms market. It issued a profit warning within a month of floating on the US Nasdaq and European Easdaq exchanges last year and most recently, its third quarter pre-tax loss soared to $13.6 million.

UK company law requires that an EGM be called if shareholders with more than 10 per cent stock request such a meeting.