Control of Bermuda-based conglomerate Jardine's which includes Jardine Matheson and Jardine Strategic is under threat from outsiders.

The company for 125 years has been held by the Scottish linked Keswick family, but at a meeting to be held in Bermuda on June 1, shareholders will vote on whether to weaken the family's control.

The action comes after the U.S.-based investment fund management firm, Brandes Investment Partners who have acquired 8 percent of Jardine Matheson and 2 percent of Jardine Strategic have become increasingly disappointed with the performance of the two companies.

According to the Associated Press (AP), the San Diego-based Brandes oppose a cross-shareholding arrangement which allows the Keswicks and their allies to appoint most directors on the boards of its companies. The practice makes takeover bids almost impossible.

The arrangement "creates conflicts of interest in the management of the organisations, higher costs and lower liquidity,'' in share trading, Brent Woods, a Brandes spokesman told AP.

But Neil McNamara, the spokesperson for the Jardine's defended cross-shareholdi ng and claimed the practice created "a stable environment to build'' the business.

In a letter to shareholders, Henry Keswick, the companies' chairman said: "We believe that the motivation behind these resolutions is based on the misconception of the business environment in which we operate.'' But analysts and field experts agree that the company is in need of new direction if it is to become competitive.