Earlier this year, Siemens(SI) shareholders overwhelmingly approved the spinoff of 80.5% of Osram at the company’s annual meeting. Or did they? Though it was reported that 98% of shareholders who cast votes were in favor of the spin off, a group of shareholders has now stepped forward to challenge the vote. While this lawsuit is pending, the company will be unable to proceed with the separation.
What was the alleged deficiency that the shareholders claim in their suit? The volume.
The nine investors plan to argue that Siemens did not conduct the shareholder meeting properly because of acoustics problems, as Chief Financial Officer Joe Kaeser partly spoke in an inaudible manner, Frankfurter Allgemeine Zeitung reported.
We’re not sure what they hope to accomplish, but based on what is reported(combined with our profound ignorance of German law) it doesn’t sound like they have much of a claim at all. The most likely outcome is that the transaction is delayed while this case is decided.
Dsiclosure: The author holds no position in any stock mentioned
Related articles
- Siemens shareholders plan to challenge Osram spin-off: report (news.yahoo.com)
- Siemens’ Osram Spinoff Seen as Prelude to More Disposals – Bloomberg (bloomberg.com)