Sika Executives Under Threat From Burkards Win Court ReprieveAndrew Noël and Jan-Henrik Förster
Sika AG, seeking to block the sale of a controlling stake by the founding family to rival Cie. de Saint-Gobain SA, said a Swiss court ruled against the Burkards request for an investors’ meeting to oust obstinate board members against the 2.75 billion-franc ($2.9 billion) deal.
The court of Zug ruled that the proximity of the annual general meeting on April 14 means an extra vote on a proposal put forward to remove Chairman Paul Haelg and two other board members isn’t necessary, Sika said in a statement.
The rulings and others before have so far been just incremental steps in an escalating legal battle between descendants of the founder and Saint-Gobain on one side, and management of the Swiss construction chemicals maker and investors left out of the 80 percent-premium deal on the other.
The court didn’t rule on whether the Burkard family’s Schenker-Winkler Holding will be able to use the full weight of its majority voting rights carried by its 16 percent stake, which both minority investors and the company’s management are against.
Having a stake of more than 10 percent entitles Schenker-Winkler to call an extraordinary shareholders’ meeting, it said in a separate statement. The cantonal court of Zug couldn’t be immediately reached for comment.
Sika shares fell 0.7 percent to 3,461 francs as of 12:56 a.m. in Zurich.