Price to woo major Paperlinx shareholders to get behind reshuffle

However, Orbis analyst Simon Mawhinney, who is scheduled to meet with the former Stream Solutions boss this week, told ProPrint the company's position was just "a positive disposition not a preference at this stage".

"We will always do what we think is in the best interests of shareholders given we are one. Assessing things like this would be important in that process. We are positively disposed to companies where owners and entrepreneurs would like to get in and manage the business."

Price is leading a group of investors, who hold a total of 5.07% of the company, to remove Paperlinx chairman Harry Boon and appoint Price as the new head. He told ProPrint he is keen to meet with the major shareholders and convince them to support the plan.

Orbis holds an 18.46% stake in Paperlinx, along with other major shareholders Schroeders (11.02%) and Maple-Brown Abbott (9.15%).

Schroeders' Kent Jenson would not comment when contacted by ProPrint, and Maple-Brown Abbott had not returned calls at time of publication.

If the three major shareholders did get behind the investor group's plan, it would give 43.7% to the resolution, which needs more than 50% to pass at an EGM to be held in the next two months.

The group, led by Price, includes printing industry shareholders David Leach, managing director of Sydney-based Look Print, and Gunn & Taylor's Andrew Gunn.

Leach told ProPrint: "As a customer and as an industry member, it is very important for all of us to see a Australian-born international brand such as Paperlinx survive and prosper for the benefits of the industry and the employees.

"You need someone like Andrew to bring people together and excite people to a cause and there are a lot of capable people out there who can take up the cause," added Leach.

Meanwhile, Price himself has told ProPrint he is putting his money where his mouth is: "I am buying Paperlinx shares today, increasing my shareholding today.

"This is a medium- to long-term play, not a short-term one. I see it as a great turnaround story in this business."

Asked whether his former parent company, Toll Group, could factor into the plan, Price said it was not part of the strategy.

Paperlinx chairman Harry Boon, who Price is trying to oust, has been a non-executive director of Toll Group since 2006.

James Orr, Paperlinx's executive general manager, Corporate Affairs, did not comment when contacted by ProPrint.

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