Shareholders invited to discussions with Michelin on new audit demand

Michelin representatives are prepared next week to begin talks with minority shareholders in Polish tire-maker Stomil Olsztyn, to resolve a dispute over an investigation into accusations that Michelin is fraudulently moving profits out of the country. The aim of the negotiations is to achieve a compromise on the terms of an inspection to determine whether Michelin, owner of a 52.2% stake in Stomil Olsztyn, has been channeling Stomil's profits out of the country. Although a recent audit conducted by consulting company Arthur Andersen determined that there is nothing unusual about Michelin's treatment of Stomil, a coalition of investment funds and shareholders is insisting that another auditor, BDO, should examine the issue. The investment funds have already stated that they are not interested in a compromise with Michelin, and hope a court will force Michelin to accept an audit by BDO. (Gazeta Wyborcza, p. 24) M.T.K.