ThyssenKrupp could face lawsuit over supervisory board appointment |
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Fri, 19 Jan 2007 09:41
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DUESSELDORF, Germany (AFX) - ThyssenKrupp AG said could face a lawsuit from Germany's DSW Association for the Protection of Shareholders if it goes ahead with plans to grant the Alfried Krupp von Bohlen und Halbach foundation an additional seat on the supervisory board.'We will examine all legal options to oppose it,' DSW spokesman Juergen Kurz told Handelsblatt.Reports have said that shareholders are opposed to the move as they fear a further empowerment of the foundation would increase the threat of potential takeover bids for ThyssenKrupp.ThyssenKrupp last month announced that the foundation wanted to increase its representation on the supervisory board to three from two seats once its stake in the company surpassed 25 pct.The foundation announced Dec 29 that its ThyssenKrupp stake was 25.10 pct, up from 23.71 pct.Fund manager Union Investment, one of ThyssenKrupp's top ten shareholders, earlier this week defended the proposal to allow the foundation a further seat.Norbert Faller, senior portfolio manager at Union Investment said he had no concern over the proposal, adding he he did not see it as a corporate governance issue, and that it 'does make sense'.However, Faller and another analyst -- who declined to be named -- expressed concern about the possibility of a shareholder revolt at the AGM. The analyst said shareholders would have 'a point' to contest a further empowerment of the foundation, which the analyst said was already regarded as a threat to takeovers.alfred.kueppers@afxnews.comamk/lamCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Dutch court orders enquiry into Stork, appoints new supervisory board members 