On Thursday an extraordinary meeting of Haldex’s shareholders ordered the board to fully comply with the bidder, German Knorr-Bremse. The board withdrew its support for the bid in June as it believed the European Commission would likely turn down the deal. Since then Haldex has chosen to break off all collaboration with Knorr-Bremse over the bid.
After the meeting CEO Jörgen Durban kept his stance to ignore the board’s order. “We cannot implement the decision as it would benefit one owner, but damage Haldex.”
The board of Swedish brake systems manufacturer Haldex said on Wednesday that it would not support a bid from Germany’s Knorr-Bremse, regardless of the outcome of a shareholders meeting on 17 August.
The German company is proposing that the extra meeting instruct the Haldex board to recommend that the Swedish Securities Council approve an extension of the acceptance period for the bid.
Haldex does not believe in a further extension, however, saying the competition authorities are unlikely to approve the deal.
Haldex has said an extension would cause the company material harm, and has identified eight instances in which it has been unable to sign long-term contracts with customers as a result of the lengthy bidding process.