JONA (dpa-AFX) - Eurocement Holding, a key shareholder in Holcim Ltd (HCMLY.PK), plans to vote against the Swiss cement maker's merger with Lafarge SA (LFGEF.PK, LFRGY.PK) unless the financial terms of the deal are altered, the Wall Street Journal said Sunday, quoting a person familiar with matter. Eurocement is the second-largest shareholder in Holcim Ltd with a 10.82% stake.
According to the Journal, Eurocement believes the terms of the deal still undervalue Holcim despite the recent revision of the merger terms. The deal, originally structured as a one-for-one share swap, now offers nine Holcim shares for 10 Lafarge shares.
Eurocement's opposition comes more than a week after Holcim and Lafarge altered the terms of their $44 billion merger, following renegotiation over the financial terms and leadership of the combined company. Lafarge CEO Bruno Lafont was originally named to head the combined business, but will now serve as nonexecutive co-chairman. The companies are yet to appoint a person to head the merged business.
The merger is subject to approval by two-thirds of Holcim shareholders. An extraordinary shareholders meet is set for May 8.
Copyright RTT News/dpa-AFX
© 2015 AFX News
