Major Holcim shareholder wants clarity on CEO in Lafarge deal
Reuters
Published Mar 27, 2015 16:21
Major Holcim shareholder wants clarity on CEO in Lafarge deal
ZURICH (Reuters) - A leading shareholder in Swiss cement group Holcim (VX:HOLN) wants to know who will lead an enlarged group to be formed in a merger with France's Lafarge (PA:LAFP) before it decides whether to back the deal.
The tie-up to create the world's biggest cement business was thrown into doubt when Holcim shareholders raised objections to the terms of the deal and the choice of chief executive.
Holcim and Lafarge last week agreed a new share-swap ratio that was more advantageous to Holcim investors and also decided that Lafarge boss Bruno Lafont would no longer become chief executive of the combination. However, an alternative has yet to be named.
Uncertainty over the CEO had left a central question in the deal unresolved, said David Herro, chief investment officer for international equities at Harris Associates which owns 3.19 percent of Holcim's shares according to Thomson Reuters data.
"Before we decide on the transaction we first want to know who will be put forward for this post," Herro is quoted as telling Swiss business newspaper Finanz und Wirtschaft in an interview published on Friday.
Herro added that it would be an attractive deal if the two companies are integrated smoothly and the business is led prudently.
Holcim declined to comment on the remarks. A spokeswoman for Harris Associates, the third largest shareholder in Holcim, confirmed Herro's comments.
A source close to the situation has told Reuters previously the plan was for a new CEO candidate to be named before Holcim's extraordinary shareholder meeting on May 8, when investors will vote on whether to approve the merger.
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Written By: Reuters
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