Hedge fund Elliott to bring in special examiner at Canon's Axis

Canon Electronics

16/06/2015 09:16

STOCKHOLM, June 16 (Reuters) - Hedge fund Elliott Management 
has moved to bring in a special examiner at Axis  AXIS.ST  as 
its standoff with Japan's Canon  7739.T  in the Swedish video 
surveillance firm intensified. 
    In a rare move, the hedge fund proposed that a minority 
auditor and a special examiner be appointed after its proposal 
for a dividend to shareholders was rejected, a statement from 
Axis annual general meeting showed on Tuesday. 
    Elliott wants the special examiner to investigate if the 
board and management acted in all shareholders' best interest 
after Canon's takeover offer for Axis. 
    Under Swedish law, shareholders with 10 percent or more of 
shares can demand that a minority auditor and a special examiner 
be appointed, meaning Elliott may now apply for the appointments 
with the Swedish Companies Registration Office, Axis said. 
    Axis' board said in May it was proposing to pay no dividend 
for 2014 while Elliot had proposed a payout of 6 Swedish crowns 
per share.  
    The Japanese camera maker made a 23.6 billion Swedish crowns 
($2.89 billion) bid for Axis in February, but the takeover hit a 
snag after Elliott raised its stake to 10 percent. 
    That effectively stopped a standard squeeze-out procedure in 
which Canon, once it owns more than 90 percent of Axis shares, 
can forcibly acquire the rest. Canon owns 84.8 percent of Axis 
shares, Thomson Reuters data showed. 
 
($1 = 8.1613 Swedish crowns) 
 
 (Reporting by Johan Ahlander; editing by Niklas Pollard) 
 ((johan.ahlander@thomsonreuters.com; +46 707 211027; Reuters 
Messaging: johan.ahlander.reuters.com@reuters.net)) 
 
Keywords: AXIS CANON/