ZURICH (Reuters) - SoftwareOne said on Tuesday that two of its key board members will not stand for re-election next month as it pitched a compromise in a power struggle with the Swiss IT services provider's founding shareholders.
Timo Ihamuotila, chief financial officer of Swiss engineering group ABB (ST:ABB), and lawyer Isabelle Romy will step down from the board of directors at the upcoming annual general meeting on April 18, SoftwareOne said in a statement.
The firm's three founding shareholders are seeking to vote out the board of directors to pave the way for a takeover.
Daniel von Stockar, Rene Gilli and B. Curti Holding AG together control 29% of company stock.
The current board, which remains opposed to a takeover, has however, recommended electing "a proportionate number" of their nominees. These nominees would be von Stockar, Annabella Bassler and Andrea Sieber.
"This recommendation is based on the firm belief that a balanced Board of Directors is in the best interest of all stakeholders," the company said, adding that continuity would benefit growth, profitability and strategic goals.
The founding shareholders issued a statement saying they were sticking to their position.
"The founding shareholders election proposals are clear and there is nothing to add. They have lost confidence in the current board and chair," the statement said.
"The company needs a fresh start with a renewed board of directors. The decision is up to the shareholders."