Stanford vows to battle on

VETERAN tycoon Cliff Stanford, founder of Demon Internet, is vowing to continue his battle for control of web-hosting group Redbus Interhouse after he was defeated by 55m votes to 44m in an agm battle yesterday.

Stanford resigned as deputy chief executive and will call an extraordinary meeting to demand the resignation of management led by chairman John Porter.

'I am not willing to make a bid at this price, but ultimately I will take back control if I have to,' says Stanford. Redbus shares, 326p two years ago, are 5 3/4p. It has cash worth effectively 10p a share.

Porter says he wants to conserve money and build the company steadily without spending too much. 'I hope we will be cash generative within 12 months. I think Cliff's ego has difficulties with this strategy.'

Stanford says Porter's team is spending money at 'a phenomenal rate', and that 'the only choice is to conserve cash'. But he would back a rights issue to finance growth.