Aryzta's biggest shareholder, Cobas Asset Management, has today called for an extraordinary general meeting to discuss what it called a better funding plan for the Swiss-Irish baker.
Under its alternative proposals, Cobas said it would support a €400m capital increase - half of what Aryzta’s board wants.
Aryzta's board had called on shareholders to support its plan at the annual general meeting to raise €800m in new capital to cut debt and restore growth.
"Cobas cannot defend actions that lead to such destruction of shareholder value as would occur through the highly dilutive capital increase proposed by the Aryzta's board of directors," Cobas said.
It has a stake of 14.5% in the owner of Cuisine de France.
Cobas had said this month the planned capital increase was excessive and it would present less dilutive measures.
Cobas said it would also ask Aryzta to sell non-core assets, which could raise an additional €250m.
"Serious expression of interest from third parties for several assets have already been received," the Madrid-based investment company said, adding a deal could be arranged in a "very short time frame".
"This alternative proposal of raising €650m (€640m net of expenses) significantly improves the outlook for shareholders in the medium term in comparison to the €800m (€750m net of expenses) proposed by the board," Cobas said.
Cobas added it would be prepared to support Aryzta's raising up to €400m in extra capital in the next 12 months, "if properly explained".
