Italcementi SpA and its French unit Ciments Francais have suspended the approval of their merger project until their next meeting, to take place not later than June 26.
Italcementi and Ciments Francais, however, confirmed their favourable view on the project, the two companies said.
The approval of the merger was suspended due to an ongoing dispute with US institutional investors holders of notes issued by Ciments in 2002 and 2006 for US$500m (€359.7m). The dispute stems from the interpretation of the contract’s clauses referring to the possibility for a merger to take place without the consent of the noteholders. The suspension is aimed at reaching an acceptable solution which complies with the merger’s objectives.