Stork may face hedge fund legal action

Hedge funds Centaurus and Paulson are considering taking legal action against industrial conglomerate Stork after the Dutch firm increased its anti-takeover defences yesterday, the Financieele Dagblad reports. The two hedge funds, which own 30% of Stork, are angry that Stork issued new cumpref shares, giving a 50% say in the company to the Stork Foundation.

Sources told the paper that the hedge funds were planning to go to the company court in the near future. They argue that cumprefs are only issued to prevent a takeover. The hedge funds do not want to take over Stork. Instead, they want to force it to sell off two divisions and focus on aerospace.
The hedge funds have accused the Stork Foundation of frustrating the democratic will of shareholders.

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