January 24, 2007

Hedge Funds Face Opposition

-- Pushpa Sathish, Staff Writer

Hedge funds Centaurus Capital and Paulson find other Dutch voices being raised against them for forcing Stork NV to break up. Minor shareholder Robeco and pension firm ABP (though not a shareholder) are up in arms against the funds’ strong-arm tactics to push Stork to sell all except its aerospace and defense divisions. The two hedge funds jointly own a 31.4 percent stake in Stork, a figure that they apparently feel is enough to demand the dismissal of the supervisory board and curbs on its rights to take decisions on acquisitions and divestments higher than 100 million euros. Forbes reports:

ABP's Eugene Rebers said dismissing the supervisory board would be 'premature' and not in the interest of Stork. He added, “As yet Centaurus and Paulson have provided insufficient proof that their proposed strategy is indeed the best. If they wish to adopt a different strategy at all costs for reasons of their own then they should take the royal road to achieving this by making a public bid for all shares.”

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