Holcim shareholder Schmidheiny wants special dividend or improved share exchange ratio for Lafarge merger
Thomas Schmidheiny, the largest shareholder in listed Swiss cement group Holcim, wants a better deal for shareholders in the planned merger with France-based Lafarge as the deal is under threat, Sonntagszeitung reported.
The Swiss weekly cited unnamed sources close to Schmidheiny. An unnamed Holcim board member confirmed Schmidheiny's stance in stating the deal in its original form will fail.
The report said Schmidheiny considers weighing the currently agreed share exchange ratio in favour of Holcim shareholders, or the payment of a special dividend as two possible solutions. The Holcim board is already thought to be considering a special dividend, the report continued. Schmidheiny believes Lafarge is more likely to approve a special dividend than alter the share exchange ratio.
Swiss investor Swisscanto last week called for the share exchange ratio to be improved to 55:45 in favour of Holcim, while Helvea Baader Bank expects the ratio to be improved to 57:43 which would result in an extra one to two billion Swiss francs for Holcim shareholders, the report stated.
The report said Ethos, the Swiss foundation which represents 202 pension funds and institutions, is also against the deal in its current form and is expected to inform the Holcim board that a special dividend is not enough and that it will advise its members to vote against the deal unless the share exchange ratio is improved.
Holcim's largest shareholders Schmidheiny, Eurocement, Harris, Harbour and Black Rock own a total of 42%, while institutional investors own 46%, while the share held by Swiss pension funds, insurers and funds is not clear, the report stated.
Source Sonntagszeitung