March 7, 2017 / 3:07 PM / 4 months ago

Legal challenges filed against Metro split - source

2 Min Read

Shopping carts of Germany's biggest retailer Metro AG are lined up at a Metro cash and carry market in the western German city of Sankt Augustin near Bonn in this May 5, 2010 file photo.Wolfgang Rattay/File Photo

DUESSELDORF, Germany (Reuters) - Legal challenges have been launched against the plans of German retailer Metro MEOG.DE to split into two companies, a source with knowledge of the proceedings told Reuters, potentially delaying the move.

A Metro spokesman declined to comment.

Shareholders in Metro overwhelmingly voted last month to back a plan to split off the group's wholesale and hypermarket food business from Media-Saturn, Europe's biggest consumer electronics group, by the middle of the year.

Erich Kellerhals, the founder of Media-Saturn, suggested last month he was considering a legal challenge to the split. A spokesman for his holding company declined to comment on Tuesday on whether he has now gone ahead.

Kellerhals still owns a stake of close to 22 percent in Media-Saturn and has regularly clashed with Metro over its management of the business.

Metro hopes the split will help the independent companies pursue more acquisitions and trigger a revaluation of the stock as Metro currently trades at a discount to other pure wholesale retailers such as Sysco (SYY.N) and Britain's Booker (BOK.L).

Reporting by Matthias Inverardi; Writing by Emma Thomasson; Editing by Sabine Wollrab and Christoph Steitz

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below