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UPDATE 1-ASMI faces legal action over poison pill

Thu May 15, 2008 10:38pm IST
 
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(Rewrites, adds Hermes comment)

AMSTERDAM, May 15 (Reuters) - Dutch semiconductor equipment maker ASM International (ASMI.AS: Quote, Profile, Research) faces court action over a poison pill bid defence that was invoked on Wednesday.

An ASMI (ASMI.O: Quote, Profile, Research) foundation, which aims to protect the independence of the company, said on Wednesday it had obtained 29.9 percent of the firm's preference shares, seeking to ward off an investor push to fire ASMI's chief executive.

British pension fund manager Hermes, with a 15 percent stake in ASMI, said on Thursday it would ask for an injunction to have the ASMI preference shares withdrawn.

"We challenge the statement that the foundation acted independently," Hermes Focus Asset Management Europe said in a statement.

Hermes said the Dutch Enterprise Chamber has scheduled a hearing for Tuesday, May 20, one day before ASMI's annual meeting, where Hermes will call for the sacking of CEO Chuck del Prado.

Hedge fund Fursa Alternative Strategies, which owns 10 percent of ASMI, also backs the proposal. Earlier this month, influential share advisory group ISS recommended that investors vote in favour of the proposal.

Del Prado is the son of company founder Arthur del Prado, who controls about 20 percent of ASMI's shares, according to Reuters data.

Last year, Dutch industrial group Stork issued preferential shares to a foundation as a poison pill to ward off a break-up attempt by some shareholders. It had to revoke the shares later following a court ruling that it do so.

(Reporting by Harro ten Wolde; Editing by Andrew Callus/Editing by Rory Channing)

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