Solution in sight for Cloetta Fazer dispute

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A solution is again being sought in the dispute between the Finnish Fazer family and the Swedish Svenfelt family over the sweets manufacturing company Cloetta Fazer.
      The aim is to reach a principled consensus in the shareholders' meeting moved to June 16th, but several options still remain as to how the situation may be resolved.
     
Directly and indirectly, Fazer holds 44.7% of voting rights at Cloetta Fazer, against the Hjalmar Svenfelt Foundation unit trust Malfors Promotor’s 39.6 per cent.
      The families have squabbled by means of legal proceedings over the ownership of Cloetta Fazer since 2002. There have been disagreements over the size of Fazer’s shareholding in Cloetta Fazer as well over joint ventures with other Nordic candy manufacturers.
      According to the Swedish economic daily Dagens Industri, Cloetta Fazer will be divided between its owners. This would mean returning back to square one. Cloetta would continue as an independent company listed on the Stockholm Stock Exchange.
     
In practice this solution model would call for Fazer giving up at least some of its shares in Cloetta. After that Cloetta would be free to intensify its cooperation with either the Danish Toms or the Norwegian Nidar.
      Dagens Industri says the June 16th shareholders’ meeting would deal with the question of splitting the company. The details of the breaking down of the firm would be decided on in a supplementary shareholders’ meeting in the autumn, and the new company structure would come into force from the beginning of 2009.
      Karl Fazer Oy chairman of the board Carl G. Björnberg does not want to speculate over the decisions of the coming company meeting. The question is not yet even on the agenda in any shape or form.
     
“The whole business surrounding the Cloetta Fazer disagreements has been difficult. We have chosen a two-man team to come up with suggestions to settle the matter”, Björnberg says.
      The chosen pair are the former board members of the joint company, Lennart Bylock and Wilhelm Lüning.
      “Of course we have not asked for a mere model for dividing the company, but sensible suggestions to put a stop to the constant bickering once and for all”, Björnberg continues.
     
The Fazer CEO since last November, Karsten Slotte, in turn, does not want to comment on the devised solution models for Cloetta Fazer’s future.
      “My sincere wish is that the speculations surrounding Cloetta Fazer’s future would not cause any further delays to finding a solution. The situation has been frustrating, particularly for the workers and other interest groups”, Slotte says.


Previously in HS International Edition:
  Board of Cloetta Fazer rejects Fazer bid (24.3.2005)
  Fazer´s Blue turns blue and yellow under Swedish ownership (9.12.1999)

Links:
  Cloetta Fazer

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