MINority shareholders ArcelorMittal Ostrava: The majority shareholder of ArcelorMittal Ostrava has out-voted the protesters over using company shares as collateral

MINoritní akcionáři ArcelorMittal Ostrava

Minoritní akcionáři ArcelorMittal Ostrava protestují proti použití části akcií jako zástavy za úvěry a proti nízkoúročeným půjčkám, které AMO poskytla mateřské společnosti ArcelorMittal S.A. (bývalé Mittal Steel) a jiným firmám. Zatímco desítky miliard korun ze společnosti zmizely v daňových rájích, tisíce dělníků byly ze železáren propouštěny a skončily na úřadu práce. Je jasné, že ArcelorMittal zisky „rozdělil“ jednostranně – jen sobě. Této netransparentnosti a naprostému nedostatku corporate governance je třeba učinit přítrž!

Thursday, August 20, 2009

The majority shareholder of ArcelorMittal Ostrava has out-voted the protesters over using company shares as collateral

(20.8.2009 - Ostrava) The Extraordinary General Meeting (EGM) of ArcelorMittal Ostrava a.s. (AMO) ended earlier this afternoon with the approval of the controversial decision concerning the use of company shares as collateral. The minority shareholders staged a demonstration before the start of the EGM at Hotel Kovák, where the EGM was held. Feathers and plastic chickens were strewn across the entrance, symbolizing the plucking of minority shareholder rights.

“The EGM ended exactly as we anticipated. We will use all legal means available in order to reverse this decision, or at the very least, minimize the devastating damage that this will have on AMO,” said one of the minority shareholders, Jiří Psota. The group is currently working on a number of criminal complaints, some of which return to the era when the company was originally privatized. An open letter to the Czech Prime Minister is also planned. “We want to inform the Czech leader about the unbearable situation in AMO, and of the dangerous consequences resulting from today’s decision. We hope that he will challenge the ArcelorMittal SA Board of Directors and try to change their improper behaviour in the Czech Republic,” continued Mr. Psota.

Today’s decision allows the company to use 2.94 million common shares as collateral for a period of five years without further approval from a general meeting. The shareholders will be informed as to how the shares were used and under what conditions only from the annual report.

“After the low-interest rate loans, this is just another way to devalue AMO. Instead of developing the company, the majority shareholder is trying to extricate all available funds,” said Petr Červenka, another minority shareholder.

Law number 215/2009sb. allows shares to be used for collateral under Czech commercial law. It was amended on 20 July 2009.

You can find pictures of the event here.
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Pavlina Rieselová

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