07.09.03
Minority shareholders in Wella said on Wednesday they would employ injunctions and special audits to ensure the firm operates independently and in their interests after Procter & Gamble acquired control, according to a Reuters report.
The U.S. consumer products giant holds just under 80% of the German hair care company's share capital following last month's tender offer, leaving it short of the 95% needed to delist Wella as a separate entity.
"P&G must accept... hat its rights as the majority shareholder are constrained both by the law and by the practice of good corporate governance," said UK investment bank Close Brothers in a statement. Close represents a group of investors who control about 30% of Wella's non-voting preference shares.
P&G said it can carry out its business objectives for Wella regardless of how many shares remain outstanding.
The shareholder group said that in light of its demands, it considered the proposed appointment of Wella chief executive Heiner Guertler to a management role within P&G itself to be "inappropriate." Given that more than 20% of Wella's share capital remains in public hands following P&G's tender, Wella should continue to maintain separate management and accounting, the shareholders said. The statement also called for a shareholder meeting to discuss P&G's business plans for Wella and sought assurances the German firm would maintain is current dividend policy.
The U.S. consumer products giant holds just under 80% of the German hair care company's share capital following last month's tender offer, leaving it short of the 95% needed to delist Wella as a separate entity.
"P&G must accept... hat its rights as the majority shareholder are constrained both by the law and by the practice of good corporate governance," said UK investment bank Close Brothers in a statement. Close represents a group of investors who control about 30% of Wella's non-voting preference shares.
P&G said it can carry out its business objectives for Wella regardless of how many shares remain outstanding.
The shareholder group said that in light of its demands, it considered the proposed appointment of Wella chief executive Heiner Guertler to a management role within P&G itself to be "inappropriate." Given that more than 20% of Wella's share capital remains in public hands following P&G's tender, Wella should continue to maintain separate management and accounting, the shareholders said. The statement also called for a shareholder meeting to discuss P&G's business plans for Wella and sought assurances the German firm would maintain is current dividend policy.