Acergy shareholder wants improvement in corporate governance

By Lisa Kerner

Charlotte, N.C., Feb. 17 - Acergy SA investor Robotti & Co., LLC praised the company's 2008 accomplishments but took issue with Acergy's corporate governance.

In a Feb. 16 letter to Acergy's board of directors, Robotti detailed its concerns including the recently proposed stock and option compensation plans, "past unauthorized stock option issuances" and valuation and other issues relating to the failed merger with Subsea 7 Inc.

Robotti urged Acergy to take action to "opportunistically repurchase" its own securities. The shareholder also wants the board to adopt minimum shareholding requirements for its members.

In the letter, Robotti reiterated its belief that Acergy's board should ask shareholders to approve the cancelation of treasury shares, giving the board the ability to repurchase 10% of the currently outstanding shares.

According to Robotti, repurchasing debt now would allow Acergy "to immediately reduce indebtedness of $1 for each $0.60 spent," assuming Acergy's shares are worth more than $20 apiece.

Acergy, is based in Sunbury-on-Thames, England, and provides seabed-to-surface engineering and construction contractor services for the oil and gas industry.

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