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US: Holcim gets positive report from ISS

By  |  April 21, 2015

US shareholder adviser ISS has recommended Holcim investors back the Swiss cement maker’s proposed merger with France’s Lafargeahead of next month’s shareholder vote on the $40 billion tie-up. Backing from ISS is a boost to Zurich-based Holcim as it seeks to win the support of two-thirds of investors at a shareholder meeting on May 8 in order to approve a fundraising to pay for the merger.

ISS said in its report to investors that the deal warranted investors’ support as it had a clear strategic rationale and offered upside to Holcim investors through synergies.

However, the shareholder adviser stressed that a successful integration of the two companies under the combination’s proposed CEO was key.

“The companies are betting that American Eric Olsen will bridge the cultural gap,” ISS said in the report, dated April 20.

 

Full Content: The Financial Times

 

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