Ethos has decided to vote in favor of the Board's proposals at Saurer's upcoming general meeting on 11 May 2006, thereby opposing the two resolutions submitted by the Hedge Fund Laxey Partners which hinder Saurer's long-term growth and could endanger the company's perenniality.
Laxey Partners currently holds 20% of Saurer's capital and requests an immediate repayment to shareholders of an important part of its reserves. This payment would be effected through the reimbursement of CHF 9.45 of nominal value per share, corresponding to a total of CHF 137 million and yielding a 163% payout ratio. In response, the Board proposes to reimburse only CHF 1.80 per share (CHF 26 million) and to retain earnings to finance various strategic acquisitions during the coming months. However, should these acquisitions not be finalised, the Board has accepted to reimburse shareholders the corresponding amount next year. In light of the acquisitions currently in process and the explanations provided by the Company on its long term growth strategy, Ethos has decided to back the current Board and management of Saurer.
Furthermore, Laxey Partners proposes that its Chairman, Mr. Preston Rable, be elected to the Board of Directors of Saurer. Ethos recommends to oppose the nominee, the risk of conflicts of interest stemming from his position at Laxey being trop important, given the strategic options currently taken by the Board of Directors of Saurer.
