Thursday October 11, 07:04 AM
Sulzer agrees to enter Renova's share stake in co's share register - UPDATE
(Adds details, background)
ZURICH (Thomson Financial) - Sulzer AG (SUN.SW - news) and Russian billionaire Viktor Vekselberg's Renova Group have signed an agreement under which the Swiss engineering group will enter the group's shares, owned via Everest Beteiligungs GmbH, in Sulzer's share register.
In turn, Renova has agreed not to increase its shareholding in Sulzer above 33 pct and to refrain from any takeover bid or demands for changes in Sulzer's articles of associations.
The agreement is binding until May 2009.
Sulzer and Renova said they have set out the agreement as Renova's participation in Sulzer has 'strategic aspects' for both companies.
Sulzer's current board will be expanded from six to eight members, with Renova to propose the two additional members.
In the absence of support from Sulzer's board, Renova will not seek a merger or other form of combination of Sulzer and OC Oerlikon -- a company in which Renova currently holds a significant stake.
Vekselberg had built up his stake in Sulzer secretly through his investment firm Everest Beteiligungs GmbH, sparking a debate about Swiss disclosure requirements.
Sulzer chairman Ulf Berg has until now denied Vekselberg the right to register his shares in the company.
The controversy had escalated to political level with Russia saying that it sends a 'negative signal' to the Russian economy.
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