A Dutch court has dismissed the claims brought by US private equity fund Texas Pacific Group (TPG) against Israeli food manufacturer Strauss Group Ltd. (TASE:STRS), the Israeli company has reported. Strauss said that the court in Amsterdam rejected all TPG’s claims regarding the examination of service agreements with Strauss Coffee including the request to prevent the firing or suspension of Strauss Coffee CEO Todd Morgan.
TPG holds a 25.1% stake in Strauss Coffee while Strauss holds the remaining 74.9%. TPG bought its stake in 2008 for $293 million, reflecting a company value of $1.16 billion for Straus Coffee.
TPG wanted the court to order the opening of an investigation regarding Strauss Coffee. TPG claimed that Strauss abused its position as the majority shareholder and granted preference to Strauss Group interests. TPG claimed that Strauss had acted with a conflict of interests regarding proper governance and that as a minority shareholder the US private equity fund’s interests had been badly hurt.
Published by www.globes-online.com