The Globe and Mail reports in its Tuesday edition that fuel retailer Parkland is being urged not to fight a multimillion-dollar legal battle with its largest shareholder and focus instead on refreshing the company's board. The Globe's Jameson Berkow quotes New York hedge fund Engine Capital LP saying in a letter to Parkland's board on Monday, "It is becoming increasingly obvious that Parkland is at a crossroads." The board can either "continue to act in a self-serving manner by trying to entrench itself" or it can "begin working collaboratively," Engine Capital said. "Engine is hereby putting the board on notice not to engage in wasteful litigation with its shareholders." Parkland declined to comment on the letter. Late last year, two Parkland directors appointed by Simpson Oil Ltd. -- a family-owned business based in the Cayman Islands that is Parkland's single largest shareholder with a nearly 20-per-cent ownership interest -- resigned after just seven months on the board. Michael Christiansen and Marc Halley left after Parkland refused to name one of them as the company's chair. Since those two resignations, Simpson Oil has declared its governance and board nomination agreements with Parkland to be invalid.
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