Dundee joins Outokumpu in Conroy move

Dundee Bancorp (TSE) recently joined with Outokumpu, the Finnish state mining company, to unseat the entire board of directors of Conroy Petroleum and Natural Resources, an Irish resources company.

The unseating took place during a sometimes acrimonious shareholders meeting in Dublin.

The two companies called the extraordinary meeting after Conroy went ahead with the takeover of Atlantic Resources, a small Irish natural resources company. Both Dundee and Outokumpu opposed the takeover.

The principal victim of the vote was Richard Conroy, who had been chairman and chief executive of the Irish company. Conroy, also a member of the Irish Senate, founded the 11-year-old firm. Conroy Petroleum is capitalized at about 30 million Irish lb. ($59 million).

Graham Mascall, London-based managing director of Outokumpu Metals and Resources International, said the motion to replace the board was carried by about 28.4 million votes to 17 million votes.

The new 8-member board took over immediately from the old 10-member body, naming Mascall and Toronto lawyer Paul Carroll, a Dundee director, as interim co-chairmen. The company has pledged to appoint an independent Irish chairman. The combined stakes of Outokumpu and Dundee total more than 43% of Conroy. Before the Atlantic takeover diluted their holdings, the two companies together had more than 50% of the Irish company.

“The message is, Heads down, business as usual,’ ” Mascall said. “We have addressed the staff. And we’re basically trying to get on with the normal day-to-day business of the company at the same time the new board becomes familiarized with the company’s stated activities.”

The Atlantic petroleum and gas assets may now be sold. Conroy’s main asset is the Galmoy zinc deposit in County Kilkenny. Outokumpu also operates Tara, Europe’s largest zinc mine, at Navan.

Before the Atlantic takeover, Outokumpu had clashed with Richard Conroy over marketing and sales agreements for zinc from Galmoy. Conroy Petroleum, Mascall said, wanted to get Outokumpu’s expertise without paying for it. Outokumpu, Richard Conroy answered, wanted to obtain a monopoly on Galmoy zinc.

The Finnish company had also been critical of Conroy’s failure to obtain planning permission to develop the Galmoy deposit.