SGO Cie de SaintGobain

   By Nathan Allen 
 

Sika AG's (SIK.EB) chairman Paul Haelg has appealed to the company's founding family to abandon a controversial sale of its stake to France's Compagnie de Saint-Gobain SA (SGO.FR).

"We are once again calling on the Burkard heirs and Saint-Gobain to see reason, to abandon their planned transaction, and to seek alternative solutions together with us," Mr Haelg said in a speech at Sika's annual shareholders' meeting on Tuesday.

The Burkard family struck a deal in 2014 to sell its nearly 16% stake in the company, along with its 52% voting rights, to Saint-Gobain for 2.75 billion Swiss francs ($2.86 billion).

Sika's management opposed the deal, which they interpreted as a hostile takeover, as it would have given Saint-Gobain effective control of the company.

Following a prolonged legal battle a Swiss court ruled in 2016 that the deal would be unlawful and allowed Sika's management to restrict the family's voting rights.

However, the Burkard family has sought to extend its agreement with Saint-Gobain and has continued to propose its own candidates to Sika's board.

"This hostile takeover is not in Sika's interests. It serves only the ends of the Burkard heirs and Saint-Gobain... That cannot--and must not--be allowed to happen," Mr. Haelg said.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

April 17, 2018 10:13 ET (14:13 GMT)

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