Big shareholder Kuehne wants more German control of Hapag-CSAV union
THE first round of negotiations aimed at creating the world's fourth-largest container line by uniting Hapag-Lloyd and CSAV have been stalled after a key shareholder in the German carrier voted against a proposal to divide the stakes in the merged entity 70/30 in Hapag-Lloyd's favour.
Logistics entrepreneur Michael Kuehne, who has a 28.2 per cent share in Hapag-Lloyd, voted against such a split at a meeting of shareholders in Hamburg, and demands the Hapag-Lloyd share be increased by two or three per cent, reported Germany's Manager Magazin.
But a Hapag-Lloyd spokesman said the talks were continuing and the company was still open to a deal, reported Lloyd's List.
Other Hapag-Lloyd shareholders are also reported to want to reduce their stake in the company.
Mr Kuehne has long supported industry consolidation and backed a merger of Hapag-Lloyd. But Mr Kuehne opposition was widely seen to have been led to the collapse of earlier merger talks between Hapag-Lloyd and fellow German carrier Hamburg Sud in March 2013.
Back then, he reportedly backed the deal in principle but wanted to maintain the same level of control in the new entity, which was proved unacceptable to Hamburg Sud.
A merged Hapag-Lloyd and Chile's CSAV would control a fleet with a combined capacity of 1.1 million TEU.
