Glass Lewis, the proxy advisory firm, has recommended supporting Aryzta’s plan for a €800 million capital increase, according to RTE News.
The group was also joined by fellow proxy advisor ISS, who changed course and vouched for the capital increase plan.
"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.
The news comes after the Swiss-Irish baker’s biggest shareholder, Cobas Asset Management, called for a reduced increase.
On Monday, the group called for a capital increase of €400 million, half the amount the company hopes to raise.
Yesterday, Aryzta dismissed the plans for a reduced increase and said that it will stand by its plans to raise €800 million.
It said that the reduced amount would be ‘inadequate and risky’.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.