But the firm revealed that it had noticed investor discontent at the start of the year and had sought alternatives to its current strategy. Creo shares rose 30% when the plan to oust Creo chief executive Amos Michelson and the board were revealed last Tuesday.

"We were unhappy with the strategy and expressed it to the management," said Goodwood chairman Peter Puccetti. "This wasn't done lightly. And a guy like Bob [Burton] doesn't buy $1m of stock with his own money lightly."

Michelson and the board have no plans to quit and a fight for control of the firm is expected to ensue. Goodwood and Burton's next step would be to start a public proxy contest for the removal of the board and then to dismiss Michelson.

As PrintWeek went to press it had yet to issue the proxy, but said that it "won't be much further away". Following Goodwood's move Creo revealed that in August it appointed Merrill Lynch to investigate strategic alternatives. This included the sale of all or part of the business, acquisitions and joint ventures. "Once you engage an investment bank anything is possible" Michelson told PrintWeek. "Early this year management recommended to the board that we should compare our business plan against the alternatives," he said.

"The bottom line is we have no intention of letting Goodwood raise its head for long," said Michelson. "It is important to understand that no one at Creo waited for them to wake up." All players in the battle for Creo are working towards getting everything in place in time for the firm's AGM in February.

Robert Burton was previously chairman and president of two US print groups Moore and World Color Press, which he was credited with turning round. Since he left Moore in 2002 he has "been waiting for the right opportunity," said Puccetti.

Story by Barney Cox