ZURICH (Reuters) - Switzerland's Oerlikon (OERL.VX: Quote, Profile, Research) said its largest shareholder had reduced its stake in the technology group, slightly lowering a barrier to Russian billionaire Viktor Vekselberg taking control of the company.

Victory, owned by Austrian investors Georg Stumpf and Ronny Pecik, cut its holding in the company to 26 percent from 27 percent, Oerlikon said on Friday. In addition, Victory cut its position in call options that confer voting rights to 23.30 percent from 25.81 percent.

The total 3.5 percent reduction in voting rights to below 50 percent comes a week after Vekselberg increased his stake in the group by some 10 percent to 24.39 percent as he seeks to tighten his grip ahead of Oerlikon's annual general meeting on May 13.

Vekselberg, who holds the stake through his investment firm Renova, also owns a further 7.59 percent of Oerlikon through call options.

Oerlikon found itself at the centre of a takeover battle in 2005 when Pecik and Austrian financier Mirko Kovats wrested control from the Anda-Buehrle family, founders of the group once known for producing everything from Bally shoes to weapons.

Kovats later left the group and Stumpf entered Oerlikon, taking on the role of chairman at the company, whose products now range from the coatings for engines used in Formula One cars to machines used for making solar cells.

Shares in Oerlikon, have dropped some 44 percent over the last year as options trading in the stock has weighed amid a global market slump, cutting the value of Victory's investment.

Victory also holds stakes in Switzerland's Rieter (RIEN.S: Quote, Profile, Research), Georg Fischer (FIN.S: Quote, Profile, Research), Zurich Financial Services (ZURN.VX: Quote, Profile, Research) and Swiss Re (RUKN.VX: Quote, Profile, Research).

RUSSIA IN SWITZERLAND