Sika Shares Soar as Court Backs Board's Opposition to Saint-Gobain Deal
October 31 2016 - 6:17AM
Dow Jones News
By Brian Blackstone
ZURICH--Shares in Sika AG (SIK.EB) soared in early trading
Monday after a Swiss court sided with the company's management in a
dispute with its founding family, which wants to sell its stake to
French rival Saint-Gobain SA (SGO.FR).
The ruling late Friday by a Swiss cantonal court in Zug prevents
the Burkard family from selling its voting rights in Sika. The
stake is held through the family's holding company,
Schenker-Winkler Holding AG.
It marks the latest step in a drama that has dragged on for
nearly two years between Sika and the company's founding family.
The family's planned stake sale was opposed by a majority of Sika's
board of directors, which took subsequent actions to block its
ability to sell its stake.
"The court decision is in favor for Sika's Board, which is
positive news for common Sika investors," analysts at Baader Helvea
Equity Research said Monday.
Sika shares rose 15% at 0930 GMT Monday to 4,880 Swiss francs
each ($4,935).
Schenker-Winkler Holding AG said late Friday it would appeal the
decision.
The takeover bid sparked opposition because Saint-Gobain only
proposed to purchase the 16% stake held by the Burkard family for
2.75 billion francs. That would give them control of Sika, because
that stake carries 52% of the firm's voting rights.
-Write to Brian Blackstone at brian.blackstone@wsj.com
(END) Dow Jones Newswires
October 31, 2016 06:02 ET (10:02 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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