RANGERS kingmakers River and Mercantile were today tipped to vote AGAINST the Ibrox board in the eagerly-anticipated EGM on Friday week.

 

The institutional investors are the sixth largest shareholder in the Glasgow giants and currently hold a stake of 5.77 per cent.

And they have the ability to keep the current regime in power - or install Dave King, Paul Murray and John Gilligan as directors on March 6.

The Rangers board has commissioned Boudicca Proxy Consultants, a company that lobbies shareholders ahead of company meetings, to drum up support for them.

However, River and Mercantile sold a small portion of shares to King when he became the major shareholder in his boyhood heroes last month.

City sources believe that is an indication they will back his resolutions to remove chairman David Somers, chief executive Derek Llambias and directors James Easdale and Barry Leach.

And leading equity analyst Nicla di Palma of Brewin Dolphin today agreed it is "entirely possible" the transaction signalled how they will vote in the general meeting.

She said: "If there was a transaction between River and Mercantile and Dave King then clearly there is a relationship between them.

"Obviously shareholders are free to vote as they deem appropriate at an EGM. There is no obligation on them to vote one way or the other. But if River and Mercantile feel Dave King is the best person there they will vote in favour of him.

"It is entirely possible that selling him shares is their way of telling the market how they will vote."

King and the Three Bears consortium that comprises George Letham, Douglas Park and George Taylor - who will back the resolutions to remove the board - jointly own 34.06 per cent of Rangers.

The backing of River and Mercantile would take King a huge step closer to achieving the 51 per cent he needs to seize control at the general meeting.

River and Mercantile refused to confirm if they would back the resolutions put forward by King.

But Global Head of Distribution James Barham confirmed the company would be voting at the general meeting.

He said: "We are not aligned to any particular group of shareholders.

"We don't comment on how we are going to vote, but we will be voting. We do feel that the current share price materially undervalues the company."

The Rangers Supporters Trust, which operates the BuyRangers fan ownership scheme, announced on Friday they have so far secured 3.25% of the vote.

The RST own 1.57% of the club and have been given proxies for over 1.68% of the total shareholding.

And Rangers First yesterday confirmed they had increased their shareholding in the SPFL Championship club to 2% - and have proxies for another 0.5%.

Former boss Ally McCoist, who has a 1.34% stake and Kieran Prior, who owns 1.35%, are both expected to back the resolutions.