Edinburgh-based oil explorer Capricorn Energy - formerly Cairn Energy - is reported to be facing a second battle with its shareholders after Britain's biggest asset manager has called for directors to be ousted.
Legal & General Investment Management (LGIM), which holds a near-4% stake in the FTSE 250 company, is agitating for changes over dissatisfaction with the proposed merger with Israel-based gas group NewMed.
Already this week Palliser Capital, the activist investor and third-biggest Capricorn shareholder, has demanded an extraordinary general meeting in a bid to remove seven of the nine directors, including chief executive Simon Thomson.
The Daily Business website says it is not uncommon for directors to face active opposition to a proposed merger, but to face two successive revolts is highly unusual.
Shareholders managed to halt the proposed tie-up with Irish group Tullow Oil in September, but the switch of partner has proved to be an equally-unpopular move.
LGIM said: "We believe there has been a substantial breakdown in relations between the current Capricorn board and Capricorn shareholders.
Concerns
"Despite extensive engagement with the Capricorn board since the summer, we retain a number of concerns with the strategic direction and approach by the board. Therefore, we believe a change of directors is now warranted."
Investors controlling about a third of its shares have now publicly stated their wish to oust Capricorn directors.
Cairn Energy was established by former Scotland international rugby player Bill Gammell.
FTSE 100
The UK's top share index, the FTSE 100, was up 15 points at 7,386 shortly after opening this morning, following yesterday's nine-point gain.
No FTSE 350 companies are due to report today.
Brent crude futures were down 0.45% earlier today at $79.63 a barrel.