ONE of the oldest names in British business, Cookson, could be lost as part of an overhaul that may lead to a demerger of the FTSE 250 industrial group’s electronics division.
The company, which was formed three centuries ago with metal and glass operations on Tyneside, is reviewing its business structure, which could result in breaking the group in two.
The larger division produces specialised ceramics for steelmakers, while the fast-growing electronics arm makes high-performance materials used in circuit boards for gadgets including iPads.
The ceramics arm trades under the brands Vesuvius and Foseco. It is thought the division would adopt the name Vesuvius if the group demerges, with the electronics division choosing between its two operating brands — Alpha and Enthone.
The £1.7 billion group has attracted a number of activist shareholders — Cevian Capital has 20%, and Governance for Owners has 4.3% — which are pressing Nick Salmon, the chief executive, to create more value by demerging the electronics operation.
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Cookson was hit by a 32% vote against its remuneration report by investors after a long-term bonus paid out £20m in shares to its top three executives. The company also agreed to appoint Christer Gardell, a managing partner at Cevian, to the board as a non-executive director.
It is thought investors are pushing Jeff Harris, the chairman, to make further board changes by replacing some of the longer-serving members of the board. John Sussens is the senior independent director and chairman of the remuneration committee and has served on Cookson’s board for eight years.
Others that have served lengthy stints include Jeff Hewitt and Jan Oosterveld,both of whom also sit on the remuneration committee.
Cookson’s shares closed at 599p on Friday.