New Sika Minority Shareholders Oppose Saint-Gobain's Takeover Attempt

By Inti Landauro

PARIS--Resistance to Saint-Gobain's (SGO.FR) offer to buy Swiss-based Sika (SIK.VX) strengthened on Tuesday as a new group of minority shareholders said they oppose the deal.

Walter Gruebler, a former chairman of Sika's board, and former board members, said they are backing the company's management in opposing the Saint-Gobain takeover attempt, Sika said in a statement. The stake held by those former board members represents 1% of Sika's equity.

"This transaction endangers the culture of a great Swiss family company that has been able to evolve over the decades and destroys value for Sika shareholders," the minority shareholders said. "Resistance, represented by the board and the management, is justified."

Sika's management and its board are fiercely fighting an agreement sealed between the Burkard family, which controls Sika, and Saint-Gobain in December. The family accepted an offer of 2.75 billion Swiss francs ($3.13 billion) for its holding company Schenker-Winkler Holding AG, one of Europe's biggest building-materials groups by revenue. The holding company currently holds 52.4% of the voting rights in Sika but only 16.1% of the shares.

The sale would give Saint-Gobain control without having to make an offer for the remaining 83.9% owned by shareholders. The deal is unfair for minority shareholders, the management has said.

Sika has said shareholders representing more than 35% of its total capital have given their assurance that they support the board of directors in its efforts to fend off the takeover.

Sika employs 16,000 people and supplies additives for concrete and cement, as well as noise-damping products for the automotive sector. The company increased sales by 8.3% to CHF5.57 billion in 2014.

Write to Inti Landauro at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires