German family-owned investment holding firm Aton, M&R’s largest shareholder with a 39.8percent stake in the group and which has made a hostile takeover bid for M&R, said on Friday that it would not support the transaction. This means M&R faces a mammoth task to get the vast majority of its remaining shareholders to support the proposed transaction.
M&R earlier on Friday reported that its board and Aveng’s board had reached an in-principle agreement on the proposed transaction, but a formal offer had not yet been made.
Aton, whose stated intention was to acquire 50percent plus one share in M&R, said it had not had any engagement with either M&R or Aveng on the transaction, which directly conflicted with M&R’s stated strategy to exit both the infrastructure and building sector and manufacturing.
It said the transaction clearly demonstrated that M&R’s management was putting its interests ahead of those of shareholders and other stakeholders.