Holcim says Eurocement proposal 'too late' for consideration at meeting

Holcim said a proposal by a major shareholder to have a seat on the LafargeHolcim board had come too late to be included in the agenda of a shareholder meeting next month.

Lafarge and Holcim announced the names of the candidates for the board of the new group earlier this week, in a list comprising seven nominees from Holcim and seven from Lafarge.

On Wednesday, Eurocement notified Holcim that, as the Swiss major’s second largest shareholder, it was nominating Galchev to join the board, and expected the company to "honour their proposal".

However, yesterday Holcim said: "This proposal came too late to be considered by the board of directors of Holcim for inclusion into the agenda of the extraordinary general meeting."

Recent press comments have indicated that Eurocement is not in favour of the Lafarge and Holcim merger despite the recently revised terms. Though Eurocement gave no indication that it accepts the current terms of the deal, Galchev's nomination was considered as a sign that the company was softening its resistance to the merger.

Holcim needs the backing of two-thirds of its shareholders at the meeting on 8 May to approve a capital increase to fund the proposed deal.

Eurocement can still put Galchev's candidacy to the company's shareholders on the day of the meeting, provided the proposal meets form and content requirements, Reuters quoted a Swiss securities lawyer as saying.