Michelin accuses Stomil’s minority owners of slander

Tire-manufacturing giant Michelin said on Friday it is going to sue minority stakeholders in domestic tire-producer Stomil Olsztyn for alleging that the French group had artificially reduced its profits at its east European unit. Michelin, which has been its strategic investor for six years, owns a 59% stake in Stomil, while minority owners, including mainly investment and pension funds, hold a total of 24% of its shares. They have accused the French of reducing Stomil's profits by imposing unusually high licensing fees, decreasing its export prices, limiting their access to information and depriving them of their right to contribute in the company’s decision-making processes. Thierry Coudurier, Michelin's Director of European operations, told Reuters that the minority shareholders were seeking to force the French group to call a public tender for Stomil's outstanding shares at an inflated price and added that Michelin would not yield to such pressure. The French have also stated that they will formally request the Exchange and Securities Commission to conduct an investigation into whether or not Stomil share prices have as of late been subjected to manipulation. Minority shareholders have suggested that an independent entity conduct an audit of Michelin’s books, while the latter has said it would be willing to undergo a limited check carried out by its regular auditor Authur Andersen. (Reuters; Gazeta Wyborcza, March 10-11, p.31) M.S.-C.