HAMM, GERMANY (Feb. 14, 12:30 p.m. ET) — Octavian Special Master Fund, a U.S. hedge fund, has failed in court to have Chairman Michael Naschke dismissed at injection molder Balda AG.
Octavian, which through various funds owns approximately 8.3% of the outstanding shares of Balda, said last week: “Octavian's proposal to replace Balda's current supervisory board received overwhelming support from shareholders who are not affiliated with Michael Chiang. Every shareholder… was highly critical of the current supervisory board and extremely vocal about their deep concerns regarding the state of affairs at Balda.”
But Bad Oeynhausen-based Balda said in a news release that the court in Hamm, Germany, dismissed the notion and said there are no doubts that “the chairman of the supervisory board will conduct the meeting dutifully and without any impairment of the rights of the petitioner or any other shareholders”, said Balda.
The hedge fund says it will propose its own nominees at the company's annual general meeting on May 11 and call for a special auditor to investigate “the supervisory board's misconduct.”
Earlier in the month, Octavian 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.”