The activist shareholder Guy Wyser-Pratte has challenged the outcome of the AGM of Lagardère, held on 27 April, and requested the French market regulator, the AMF, to verify the procedures for the transmission of the votes submitted to the meeting.

In a letter dated 8 June 2010, Wyser-Pratte states that he has serious doubts about the validity of the result and asserts that the votes of many overseas shareholders were not counted. He states that five minutes before the meeting, he was informed by a representative of the registrar, Arlis (then a division of Lagardère), that a significant portion of proxy votes could not be taken into account, for technical reasons. The representative disclosed that this was not an isolated incident and that ‘many other votes cast were not taken into account’, citing technical problems at US based intermediaries.

His letter goes on to suggest that the situation of Broadridge Financial Solutions Inc was very troubling. Broadridge, who he states have an ‘exclusivity agreement’ with Lagardère,  had transmitted votes equivalent to 28% of the voting rights, and that it was probable that most of these were cast in favour of his proposals. However the transmission of many of these votes had failed, for reasons which had not been explained to him.

Wyser-Pratte considers that the magnitude of these failures is such that manipulation cannot be ruled out.

Wyser-Prattes two resolutions garnered support of 22% and 24% of the votes respectively, and he believes the true level of support should have exceeded 30%. The official turnout at the meeting was disclosed as 65% by the company.

L’Expansion:  Wyser-Pratte conteste le vote de la dernière AG de Lagardère auprès de l’AMF

Last Updated: 18 June 2010