FRANKFURT: Shareholder adviser Ivox Glass Lewis has called on Linde investors to vote against signing off on the actions of its management and supervisory board due to problems in the handling of a planned merger with peer Praxair.
The all-share merger of equals would reunite a global industrial gases company that split in World War One and would create a market leader to rival Air Liquide.
But the $65 billion deal has faced unexpectedly strong opposition from trade unions, who fear a dilution of their influence and large-scale job losses, as well as scepticism from investors.
Hasty management changes during the negotiations with Praxair last year, a row with some shareholders over the lack of a vote on the merger, and strong opposition from the labour side to the deal have raised doubts about best governance, Ivox Glass Lewis said.
It therefore advised shareholders against ratifying the decisions by the company’s bosses and its supervisors.
Such votes on mergers are customary in Germany and are an opportunity for shareholders to express confidence in their leadership.
But such votes do not free individuals from liability for their actions.
Many investment funds from the United States and Britain follow the recommendations of advisory firms such as Ivox Glass Lewis at shareholder meetings.— AFP
Oman Observer is now on the WhatsApp channel. Click here
