Proxy adviser Glass Lewis had recommended supporting baking group Aryzta's plan for an €800m capital increase, it said today.
This means that three corporate governance advisory groups - ISS, Glass Lewis and Ethos - have all recommended Aryzta shareholders to support the capital increase plan,
The plan will be put to shareholders at the company's AGM on 1 November.
"Overall, we recognise that there appears to be a lack of viable alternatives available to the company at the present time and that the proposed capital increase would provide the company with necessary capital to meet outstanding liabilities and fund management's turnaround plan," Glass Lewis said today.
Meanwhile, proxy adviser ISS changed course and recommended today that shareholders support Aryzta's €800m capital increase plan. It had opposed the idea earlier this week.
The Irish-Swiss group's biggest shareholder, Cobas Asset Management, has proposed halving the €800m plan to €400m.
In a statement today Aryzta said its board of directors and its executive committee unanimously believe that a capital raise of €800m is the financing option and transaction which has the highest probability of success for the company and all stakeholders.
It added that it is the only proposal that addresses the critical issue of commercial confidence in the group.
"The board of directors and the executive committee unanimously believe that a capital raise of €800m is required in order to strengthen Aryzta's balance sheet, provide necessary liquidity and working capital funding, provide the group with the time and financial flexibility to deliver on its multiyear turnaround plan and enable Aryzta to maximise the value of its non-core asset disposals for further net leverage reduction," the statement added.
Aryzta said it was recommending all of its shareholders vote in favour of the capital raise proposal at the AGM next month.
