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Magna International AGM - Shareholders will vote about Frank Stronach’s future

Published: July 9, 2010; 00:00 · (Vindobona)

The Austrian-Canadian supplier Magna International set a new general meeting for July 23rd, to vote about the retreat of founder Frank Stronach.

Magna International AGM - Shareholders will vote about Frank Stronach’s future / Picture: © Reuters

As reported, the so-called A-shareholders of Magna already decided on a new corporate structure and the associated loss of control of Stronach. This project was questioned four days before the meeting by an "additional claim" by Ontario Securities Commission (OSC). OSC asked the group for additional information.

Stronach – if the plan is adopted - will receive $863m in cash and shares, and giving up his 727 000 B shares, which allowed the control of the company. His voting share will fall from around 66 to 7.6 percent.

The plan is opposed by several institutional investors because they think the compensation is too high.

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