UPDATE 1-Hedge fund to force shareholder vote on Nexans CEO

martes 15 de abril de 2014 10:56 GYT
 

* Amber wants to split chairman and CEO functions

* Nexans shares down 44 pct in three years

* Company said in February it would not pay dividend

* Nexans one of most shorted stocks on French bourse (Adds background, detail)

By Andrew Callus and Blaise Robinson

PARIS, April 15 (Reuters) - Nexans shareholder Amber Capital said it plans to force a vote on a resolution to push Chairman and Chief Executive Frederic Vincent off the board at the cable maker's annual shareholder meeting on May 15.

Nexans made a loss in 2013 and skipped its dividend for the year after being forced to raise new share capital in October, blaming a lack of growth in Europe and industry overcapacity.

Hedge fund Amber, which has a 5.5 percent stake in Nexans and is the Paris-listed company's fourth-largest shareholder, knows it has little chance of success but plans to submit the resolution on Tuesday in protest against what it sees as poor performance since Vincent took the helm in 2009, Amber managing partner Olivier Fortesa told Reuters.

The resolution will be based on an Oct. 31 request from Amber to split the chairman and CEO functions, in line with U.S. and British corporate governance norms, Fortesa said. That request was denied two weeks later.   Continuación...