UK: Pressure placed on Pernod voting laws - report

Pernod Ricard's shareholder voting rules could come under pressure today (4 July) as Allied Domecq shareholders meet to approve the takeover of Allied by the French rival.

In a story in the Mail on Sunday yesterday, shareholder pressure group Pirc attacked Pernod voting laws that gave double voting rights to shareholders who had been registered with the company for over 10 years.

Alan MacDougall, managing director of shareholder pressure group Pirc, said: "This will substantially reduce the voting power of the new (Allied) shareholders."

He told the Mail: "Regardless of how long they have held their Allied shares, they must wait a decade to benefit from the enhanced voting rights."

The laws give the balance of power to Pernod Ricard's founding family, headed by Patrick Ricard. The family stake will be 9% after the Allied takeover, however the Mail said the family's voting interest is double that and when other French allies are taken into account Ricard could control up to 40% of the votes.

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