Vitro: Shareholder Challenge To Subsidiary Merger Plan

A minority shareholder in flat glass maker Vitro Plan unit has started legal proceedings to prevent Vitro from merging the unit into wholly owned subsidiary Vimexico, the Mexican glass giant announced 17/01/07. In a release, Vitro said that UK-based flat glass maker Pilkington, which owns 35% of Vitro Plan, is undertaking legal proceeding to try to stop the merger. Vitro said it believes the proceedings have "no legal foundation" and that it will defend its plans. The merger, which was approved by shareholders in December 2006, would give Vitro a 91.8% stake in Vimexico, leaving Pilkington with the rest. It would reduce debt at the company's flat glass business by US$ 135M.