12 June 2001 17:41 [Source: ICIS news]
LONDON (CNI)--Suggestions that the board of directors of Swedish chemicals and flooring group Perstorp misled shareholders over the initial takeover offer made to them last year by Industri Kapital are dismissed in reports distributed to shareholders ahead of Perstorp's annual general meeting on Tuesday.
An inquiry conducted by Lars Bredin, former head of the Stockholm Exchange, and auditor Bo Magnusson "found no reason to criticise the manner and scope in which Perstorp provided information to Industri Kapital in connection with the offer process."
Neither was there criticism of the way the Perstorp board acted following withdrawal of an Industri Kapital bid originally made in September last year. European venture capital group Industri Kapital subsequently resubmitted a bid for Perstorp which has won overwhelming support from shareholders.
A second enquiry commissioned by the Perstorp board and headed by Swedish Supreme Court Justice Johan Munck concluded that the Swedish Shareholders Association would not succeed in any action seeking damages from Perstorp's board and directors.
The controversy fuelling the complaints arose from a much poorer than expected performance by the Pergo flooring division. Shareholders complained of a delay in publishing new information relating to Pergo's performance. Judge Munck concluded that no share dealing had taken place while the information was being updated and therefore any delay could not result in actionable claims.
Industri Kapital renewed its bid through its wholly owned subsidiary Sydsvenska Kemi on condition that Perstorp management agreed to spin off Pergo as a separate entity. Sydsvenska Kemi announced that it had acquired 97.5% of Perstorp shares on 6 June.
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