Germany-based medical molder Balda AG is accusing one of its shareholders, Elector GmbH, of trying to change the company's strategic orientation by organizing a general meeting in Berlin.
Elector had arranged the meeting, due to take place today in Berlin, to appoint three new members to Balda's supervisory board.
However, Bad Oeynhausen, Germany-based Balda says the decision to hold the meeting in Berlin is "anything but shareholder friendly" as shareholders from Eastern Westphalia will find the city difficult to get to.
"As of today, Elector has not yet explained which strategic goals it pursues with its investment in Balda," Chairman Michael Naschke said in a statement earlier this week. "This makes it likely that Berlin has been chosen as the venue of the extraordinary General Meeting to keep the attendance rate of all other shareholders - who after all represent more than 70 percent of the share capital - as low as possible in order to initiate a fundamental change in Balda's strategic orientation."
The announcement comes only a year after Balda said another shareholder, U.S. hedge fund Octavian Advisors LP, failed to have Naschke dismissed.
Octavian had accused Balda's board of inflicting "severe damage on the company and its shareholders" because of a conflict of interest. It said Balda had used "deceptive tactics and inaccurate arguments in order to defend its questionable behavior and to mislead shareholders."
Balda got a bigger foothold in the U.S. medical market in December, when it bought the custom injection molding and mold-making operations of family-owned C. Brewer in Anaheim, Irvine and Ontario, Calif., as well as HK Plastics Engineering Inc. and HK Screw Machine Products, both in Oceanside, Calif.