‘If Invesco was a matchmaker, it should have disclosed it at the time of EGM requisition’
Shriram Subramanian, Founder and MD at proxy advisory firm InGovern, has said that Invesco’s actions so far seem to be a takeover battle under the guise of shareholder activism
As the tussle between Zee and Invesco Developing Market Funds goes on, Shriram Subramanian, Founder and MD at proxy advisory firm InGovern has reportedly said that “Invesco’s actions so far in its battle against Zee seem to be a takeover battle under the guise of shareholder activism.”
Subramanian has said this during a conversation with business portal Brand Equity. The comments came after Zee Entertainment Enterprises Ltd in a stock exchange filing on Tuesday stated that Invesco Developing Market Funds had earlier offered them to merge the company with a large Indian conglomerate. Media reports later claimed that Invesco has disclosed that the large Indian conglomerate in question is Reliance.
Answering a question, Subramanian reportedly said that “Reliance group entities should have directly approached the Board of Zee with their offer and it is surprising that Invesco has been leading the discussions.”
“It is not clear if the Reliance entities are still interested or if Invesco is still acting on their behalf. The actions of Invesco seem to suggest so. After the EGM notice and, on September 22nd, when Zee-Sony merger was announced, Invesco could have positively engaged and tried to find a way out,” he was quoted as saying.
“Invesco's insistence on Punit Goenka's removal sans an alternative plan was baffling to all. This despite Invesco saying in court that they are not against the Zee-Sony deal, the terms of which were in the public domain,” he reportedly said.
Subramanian further said, “If Invesco has all along been playing matchmaker, they should have disclosed it at the time of the EGM requisition.”
Talking about the lessons that Indian inc can learn from the battle, he said, “corporate India needs to be prepared for more shareholder battles.”
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