PARIS — A group of minority shareholders of the La Redoute mail order group lost its court case opposing the pending merger between La Redoute and its majority shareholder, the Pinault-Printemps distribution group.
The Commercial Court of Roubaix, France, on Friday turned down the minority shareholders’ request to postpone a meeting on May 18, when shareholders of both companies will be asked to approve the merger.
Pinault holds 54.36 percent of La Redoute. Terms for the merger stipulate a parity of 0.91 share of Pinault-Printemps for each share of La Redoute.
ADMS argued Pinault-Printemps should not be allowed to vote at the May 18 meeting because, as a majority shareholder in La Redoute, it would have a special advantage, but the judge ruled that would violate French law, which says mergers must be approved by all companies involved. ADMS will appeal the decision at the Court of Appeals in Douai, France.