Aryzta's row with its largest shareholder, Cobas Asset Management, has deepened, with the investor accusing the Swiss-Irish baking company of painting "an unduly grim picture" of its financial situation to ram through a disputed capital hike.
Last week, Aryzta stood by its plan to raise €800m in new equity to meet its liquidity and financing needs.
It also criticised Cobas' counterproposal to raise only half that amount as inadequate and risky.
Spain's Cobas, which has a 14.5% stake in the owner of the Cuisine de France brand, favours a €400m capital increase and the sale of non-core assets it contends could raise a further €250m.
Cobas today expressed disappointment, saying Aryzta chief executive Kevin Toland has not engaged shareholders as the company seeks to raise new money to cut debt and strengthen its balance sheet.
The baking company is reeling from a failed expansion strategy that has led to hundreds of millions of euros in losses.
"We believe that the company now is drawing an unduly grim picture of the current situation with the sole intent to convince shareholders to support the excessively large and dilutive capital increase," Cobas said in a statement.
Proxy adviser ISS had originally opposed the capital increase but on Friday changed course and said that it now backed the plan.
