Old Mutual digs in against Moyo pressure
Old Mutual is digging in its heels, saying it will not give in and settle with Peter Moyo as it is confident it will be able to overturn a court ruling that ordered it to reinstate the ousted CEO.
Business Day notes the insurer was responding to comments made by Moyo’s lawyer, Eric Mabuza, who has warned that the axed CEO’s R250m lawsuit against the company and its directors could drag on for two to four years.
This comes as shareholders, including the Public Investment Corporation, are putting increasing pressure on Old Mutual to quickly end the public battle with Moyo that has wiped 7.6% off the company’s share price since his suspension on 24 May.
Mabuza reportedly told Business Day the R250m claim was a mechanism to force Old Mutual to permanently reinstate him.
He also said that the trial to argue the merits of the claim was likely to take place in two years’ time while Old Mutual lawyers themselves have argued that it could be as long as four years before the matter is resolved.
‘The key thing is not the money, it’s reinstatement. That’s the first prize. He wants his job back,’ Mabuza said.
Spokesperson Tabby Tsengiwe said Old Mutual was confident about its appeal, which if successful, would allow the company to appoint a permanent CEO soon.
The appeal is expected to be heard some time between 4 November and 6 December, notes the report.
© Juta and Company (Pty) Ltd 2016
Article disclaimer: Juta expressly reserves the right, in its sole and absolute discretion, to alter or amend any criteria or information set out in this article without notice. Accordingly, any information, including journalistic articles, are not intended to constitute legal, financial, accounting, tax, investment, consulting or other professional advice or services. Before making any decision or taking any action based on the information contained in this article, which decision or action might affect your personal finances or business, you should consult a qualified professional advisor.