Swiss shareholder files suit against Constantin

The dispute over the realignment of the German film and sports group Constantin Medien is coming to a head. The major Swiss shareholder Bernhard Burgener rejects a so-called shoot-out. A long legal blockade now looms. A shoot-out can be used within stock corporations in order to avoid a protracted standoff in the event of a dispute. One group of shareholders buys the shares of the other. In the case of Constantin Medien, the Chairman of the Board of Directors Dieter Hahn has now apparently proposed such a procedure.

However, sources close to Burgener said on Friday that he is refusing a shoot-out. The Dispute about the future of Constantin Medien will thus continue in court. At the Annual General Meeting on Thursday, a majority of shareholders voted in favor of the sale of the film division. Instead, the Group intends to concentrate on the sports channel business ("Sport1") and sports marketing. The management and Board of Directors had campaigned for this.

Controversial change in strategy

However, the lawyer appointed by the Board of Directors to chair the meeting had excluded the major Swiss shareholder Bernhard Burgener from the vote, according to the latter. Burgener is defending himself against the change in strategy and immediately announced an action for annulment in court. The resolutions passed at the meeting were null and void, the Basel native declared.

Burgener and his allied shareholders together hold almost 30 percent of Constantin shares. At the same time, as head of Constantin's most important subsidiary Highlight Communications, based in Pratteln BL, Burgener holds a key position in the Group. Opponents of the change in strategy stated at the end of September that a sale of the film business was not in the interests of the company or the minority shareholders. The sale of the Film segment would create considerable cluster risks for the Highlight Group, which could jeopardize the continued existence of the company.

Paralyzing stalemate

On the other side is the top Constantin management around Chairman of the Board Hahn, who also controls almost 30% of the shares, and CEO Fred Kogel. The stalemate between the two camps has paralyzed the Group for months. On the first day of the two-day meeting, Kogel campaigned for a reorganization of the convoluted group of companies. Constantin Medien should concentrate on the sports business. The film division, which also bears the name Constantin, is to be sold. With box office hits such as "Fack ju Göhte" and "Er ist wieder da", it is one of the most important German producers. However, Constantin Film and part of the sports business are part of the Group subsidiary Highlight, which is managed by Burgener. A legal dispute has also broken out over Kogel and Hahn's access rights to this subsidiary. (SDA/reu)