A candidate to become chairman at struggling Irish-Swiss frozen baked goods maker Aryzta has pulled out of the race, the company said today, as it mulls a takeover approach from private equity firm Elliott Advisors.
Swiss businessman Andreas G Schmid, a former chairman and chief executive at chocolate maker Barry Callebaut, has withdrawn his candidacy. He had been opposed by activist investors.
Schmid, who was due to face election at an extraordinary shareholders meeting tomorrow, took a swipe at the company's direction.
"I had made myself available as a candidate for the chair of the board of directors of an independent company or a company with strong industrial interests," said Schmid.
He has also had chairman stints at travel group Kuoni, airline caterer Gategroup, and is the current chairman of Zurich Airport.
"It has become clear after recent developments that this solution is no longer an option, therefore, I have decided to withdraw my candidacy," he said.
Activist shareholders Veraison Capital and Cobas last month rejected the company's proposal to appoint Schmid.
The group wants former Aryzta executive Urs Jordi instead, citing his bakery industry expertise.
Last week the company, whose products include the buns for McDonald's burgers, said it was in advanced talks with Elliott about a potential public tender offer for Aryzta.
Schmid's withdrawal removed an uncertainty factor, said ZKB analyst Patrik Schwendimann, and paved the way for either a takeover by Elliott or a medium-term improvement under Jordi.
"These two scenarios both hold further upside potential," Schwendimann said.
Shares in Aryzta are down almost 95% over the past five years after management turmoil and as Covid-19 hits sales, but its shares moved higher in Dublin trade today.
