August 9 2002 – Holders of savings, or non-voting, shares in Italian power company Edison SpA Friday asked a Milan court to declare as null and void a merger with Italenergia, a shareholders’ representative was quoted as saying by local news agencies.
Ordinary shareholders of Italenergia – a Fiat SpA -led energy consortium owning 91.5 per cent of Edison – in June voted to merge it with Edison on the basis of ten Italenergia shares for seven Edison shares, both ordinary and savings.
Holders of savings shares in Edison, including UBS Warburg, Monday voted to reject a merger with Italenergia, saying it would hurt their interests.
They said an equal share-swap ratio means they will have to equally share the EUR7.9bn debt burden the merged entity will inherit from Italenergia.
Stefano Bollino said he submitted the request to the tribunal, adding that he isn’t expecting a ruling before Aug. 15, the reports said.
Bollino reiterated that Edison’s savings shareholders would drop charges against Italenergia if the consortium agrees upon a tender offer to buy their shares, the reports said.
Edison said Monday that savings shareholders weren’t entitled to vote on a merger deal. It said they will be offered Italenergia savings shares, which will grant them the same privileges as Edison savings shares.