The notorious activist investor behind a failed bid to buy Auction Technology Group has revived its campaign against the FTSE 250 firm’s management, calling for a new chair and a strategic review that could result in a sale.

Fitzwalter Capital, which is Auction Technology’s (ATG) largest shareholder, called on investors to oust incumbent chair Scott Forbes who has overseen “five years of value destruction” at the online auction platform, it said in a statement on Monday.

Under the proposal, a proposed Forbes’ replacement, Fitzwalter nominee Richard Campbell-Breeden, would launch a strategic review exploring a buyback programme or a sale. The calls come just six months after the investor abandoned an attempt to buy the FTSE 250 constituent off the stock market. Fitzwalter has called a general meeting where investors will vote on the plans.

The activist investor, which backs a combination of private and publicly listed firms, had nearly a dozen bids for ATG rebuffed during a hostile takeover campaign in which it accused its portfolio company’s management of “disastrous oversight”. Many of the bids took place under wraps before ATG disclosed the offers to investors, arguing the the 33 per cent premium implied in Fitzwalter’s final bid “fundamentally undervalued” the company.

Auction Technology’s shares remain in doldrums

ATG’s shares have shed more than 65 per cent of their value in the past five years, after it struggled to integrate the loss-making US rival Chairish.

In the group’s update on Monday, Fitzwalter partner Andrew Gray accused incumbent chair Forbes of overseeing “five years of value destruction”.

“Replacing him clears the way for an independent strategic review, including a potential sale. Most importantly, shareholders will have the final say,” he added.

As part of its latest salvo, Fitzwalter is angling for the strategic review to explore both a buyback programme or offloading the company to a new owner. It added it was not committed to a sale should it not receive any offers that deliver “appropriate value”.

It also vowed not to bid for the company should the review lead to a sale process, and promised to throw its weight behind any bid the board recommends to shareholders.

Cambell-Breeden, a former investment banker with stints at Goldman Sachs and Julius Baer, said he was independent of Fitzwalter “not prejudged the outcome of any strategic review”.

“What matters is that the review is rigorous, open-minded and focused on delivering the best outcome for ATG and all its shareholders,” he added.

ATG was approached for comment.