Final hours! Save up to 55% OFF InvestingProCLAIM SALE

Metro shareholders in talks over joint proposal for new chair: sources

Published 11/25/2020, 04:43 AM
Updated 11/25/2020, 04:45 AM
© Reuters. FILE PHOTO: Shopping carts of Germany's biggest retailer Metro AG are lined up at a Metro cash and carry market in St. Augustin

By Matthias Inverardi and Arno Schuetze

DUESSELDORF/FRANKFURT (Reuters) - Leading shareholders of German retail group Metro are in talks on a joint proposal for a future chairman in a sign that they are working to put a long-lasting spat behind them, three people close to the matter said.

Czech billionaire Daniel Kretinsky secured more than 40% of Metro's voting rights after an unsolicited voluntary offer of his vehicle EPGC expired last week. He has been at loggerheads with the Beisheim and Meridian foundations, which own a joint 23%.

Kretinsky failed in several attempts to buy the stakes of the foundations, which said his offer price was two low. Metro's management has also opposed Kretinsky's offers.

Beisheim and Meridian in September pooled their voting rights in 2019 and have said they could increase their stakes to bolster their blocking minority.

Kretinsky and the foundations have begun talks on a joint strategy for Metro, joint candidates for a total of three supervisory board members including the chairman role, which comes up for replacement at the next shareholder meeting, as well as on a new Chief Executive.

Current CEO Olaf Koch is stepping down at the end of the year with CFO Christian Baier and COO Rafael Gasset to run the company as co-CEOs on an interim basis as of January 2021.

Metro has been hard hit by the COVID-19 pandemic as restaurants and hotels are a major customer group. Its shareholders are pressing for a new strategy, including a new digital strategy and a focus on certain customer groups.

Metro has been selling off assets in recent years to focus on its European cash-and-carry business supplying hotels, restaurants and independent traders, but it is battling sluggish growth in its home market Germany and a decline in Russia.

© Reuters. FILE PHOTO: Shopping carts of Germany's biggest retailer Metro AG are lined up at a Metro cash and carry market in St. Augustin

Kretinsky and the foundations declined to comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.