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(Bloomberg) — Fermi Inc. said it fired its former chief executive officer after his actions threatened the company’s efforts to build what it describes as the world’s largest private power complex for data centers.
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Toby Neugebauer’s “behavior as CEO created disruption to operations and presented a significant threat to meaningful relationships with key stakeholders,” Fermi said in a statement Monday that provided more details about last month’s management shakeup.
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The disclosure highlights the escalating dispute between Neugebauer, who is now pushing for a sale of the company, and Fermi, which has moved to block his efforts to reshape the board. The company dismissed him for cause in April, citing violations of company policy, and now says investors and other key counterparties are declining to work with him.
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Neugebauer “damaged relationships with certain business partners, with more than one counterparty threatening to terminate its agreement with Fermi,” the company said in the statement. “Counterparties also conditioned their willingness to continue to do business with Fermi on Mr. Neugebauer no longer being an executive or exerting control over the company.”
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When contacted, Neugebauer didn’t respond specifically to the assertions in Fermi’s statement. He said by email on Monday that the company requires “shareholder-first governance on the board” to pursue “a credible full-market-value strategic process, including a competitive sale or partnership.”
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Fermi shares have slumped more than 75% from their peak following its October initial public offering, and gained 0.8% to $6.57 at 10:40 a.m. in New York.
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The company is developing a private-energy complex for US data centers in the Texas Panhandle, tapping power plants that together would generate as much as 17 gigawatts of electricity, roughly three times the amount New York City typically consumes. The complex would initially use natural gas before later adding nuclear energy.
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