April 27, 2017 / 3:10 PM / 3 years ago

Grammer says influence of Bosnian investor could put firm at risk

FRANKFURT, April 27 (Reuters) - German auto supplier Grammer AG on Thursday warned that the creeping influence of a Bosnian investor has led to a decline in automotive orders and could pose a risk to the company’s viability.

“Several major automotive OEMs are observing with great concern the Hastor family’s investment in Grammer AG and its plans to exert influence on the company,” Grammer said on Thursday as it pre-released first quarter results.

Carmakers had been holding back new contracts, resulting in a decline in new orders for the first time since 2010, Grammer said, warning that customers will be reviewing their business relations if Bosnia’s Hastor family seeks to increase its influence at an upcoming annual general meeting.

“This would pose a substantial risk to the order situation and, hence, the company’s future viability,” Grammer said.

Bosnia’s Hastor family, which owns a stake of at least 20 percent in Grammer, has criticised Grammer’s management and campaigned for seats on the board of directors. Grammer’s management have sought to rebuff Hastor’s requests. (Reporting by Edward Taylor; Editing by Harro ten Wolde)

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