Petroceltic sued by its largest shareholder

Irish oil producer Petroceltic is being sued by its largest shareholder, Worldview Capital Management, which has also called for the resignation of chief executive Brian O’Cathain.

Petroceltic resolved a dispute with the 27% stakeholder in June over a $100m (€81,000) placing of shares. Worldview had said the placing was an abuse of shareholder rights and urged fellow shareholders to reject it, but eventually reached an agreement with the oil company after winning concessions.

However yesterday, the Swiss-based investment firm accused Petroceltic of breaching that agreement by not undertaking a strategic review of the company by a deadline of September 30, and said it had started legal proceedings in the High Court. It called for the immediate resignation of the CEO, saying: “It is Worldview’s belief that Petroceltic, and in particular Brian O’Cathain, had no intention of complying with the obligation to carry out the review at the time the agreement was entered into.”