Pepees draws WSE ire by handing control of the company to employees

The general shareholders meeting of beverage company Przedsiebiorstwo Przemyslu Spozywczego "Pepees" voted through the issuance of new preferred shares, which will be acquired by employees. Despite the new shares amounting to only 14.6% of total share capital, they will represent 46.1% of votes meaning employees will de-facto takeover the company. The management of the Warsaw Stock Exchange (WSE) warned Pepees not to make such move, as it would violate the spirit of public trade of shares and may lead to the company being delisted. "I am not afraid of a conflict with the WSE, as shareholders approved that the newly issued shares will not enter public trade for three years. In my opinion the shares will have more power motivating workers to work more efficiently," said Pepees management member Marek Zaczek. Minor shareholders will probably sue the decision of the shareholders meeting. (Gazeta Wyborcza, page 22)