GfK shareholder moves to prevent hostile takeovers

GERMANY-- GfK's majority shareholder, the non-profit GfK Association, announced steps today to permanently protect the research group from any hostile takeovers.

A new members council set up by the association will in future be required to approve all measures that could result in a decrease of the GfK Association's stake in the company.

The move follows the collapse last year of GfK's planned merger with TNS, after the latter's shareholders were swayed to instead accept a £1bn takeover bid from marketing services group WPP.

Certain members of the non-profit association were opposed to the deal, particular representatives of local and regional governments, who were worried about the potential for job losses if the tie-up went ahead.

Perhaps the most vocal critic was Peter Zühlsdorff, who chaired the association between 1992 and 2005 and went on to become honorary chairman.

Zühlsdorff stepped down from that position in protest at the plans, complaining that the merger would cost the GfK Association its position as majority owner.

However the association announced today that Zühlsdorff had been re-elected as its chairman, replacing Hajo Riesenbeck, who resigned in the wake of the failure of the TNS merger deal.

Raimund Wildner and Hermann Diller were re-elected as vice-chairs of the association. Wildner, who is also managing director of GfK's method and product development division, is to step down from that role to ensure a clear separation between the executive bodies of the association and the GfK company.

In a statement, the association said: “With these changes, the GfK Association is signalling to the capital market, clients and the employees of the GfK Group that it is stable, reliable and competent to make decisions in its capacity as main shareholder of GfK.

“The association has a vital interest in maintaining and increasing the value of GfK in the long term, and wants to permanently protect it from a hostile takeover.”

Author: Brian Tarran