Bosses at Johnson Matthey have said the chemical technologies firm is making “progress” with transformation plans after calls to break up the group.
It came after US investor Standard Investments renewed demands for an overhaul, accusing the business of a “significant destruction of shareholder value”.
Johnson Matthey shares have dropped by around 60% over the past three years, knocking more than £3 billion off its market value.
Standard Investments, which owns a roughly 11% stake in the company, published a critical open letter shortly before Christmas demanding an improvement in performance.
Patrick Thomas, chairman of Johnson Matthey, responded on Christmas Eve with plans to hold talks with investors.
In a fresh letter on Tuesday, Standard Investments said the response from the chairman was “wholly insufficient and does not adequately address many serious issues”.
Directors at Standard Investments said an offer to set up an investment committee to “periodically assess whether alternative options to the status quo are available” was not adequate.
“In fact, it only underscores the continued lack of urgency and incapacity of the current board to do what is necessary to turn Johnson Matthey around and help it to realise its potential,” the investor added.
On Wednesday, bosses at Johnson Matthey responded that they are “resolute in their focus on improving Johnson Matthey’s share price performance and delivering value for shareholders”.
The board added: “Johnson Matthey is making progress in a challenging market environment through delivery of a comprehensive transformation strategy which includes significant manufacturing footprint consolidation in clean air, a generational upgrade in our PGM (platinum group metal) refining capabilities, significant cost reduction, the implementation of a global business services model and extensive organisational changes.
“In addition, we have made substantial commercial progress, winning new business across all our business areas that will drive future growth.
“We will continue to act with a strong sense of urgency as we adapt this strategy to the evolving market situation.”
