By Brian Blackstone
ZURICH--Shares in Sika AG (SIK.EB) soared in early trading Monday after a Swiss court sided with the company's management in a dispute with its founding family, which wants to sell its stake to French rival Saint-Gobain SA (SGO.FR).
The ruling late Friday by a Swiss cantonal court in Zug prevents the Burkard family from selling its voting rights in Sika. The stake is held through the family's holding company, Schenker-Winkler Holding AG.
It marks the latest step in a drama that has dragged on for nearly two years between Sika and the company's founding family. The family's planned stake sale was opposed by a majority of Sika's board of directors, which took subsequent actions to block its ability to sell its stake.
"The court decision is in favor for Sika's Board, which is positive news for common Sika investors," analysts at Baader Helvea Equity Research said Monday.
Sika shares rose 15% at 0930 GMT Monday to 4,880 Swiss francs each ($4,935).
Schenker-Winkler Holding AG said late Friday it would appeal the decision.
The takeover bid sparked opposition because Saint-Gobain only proposed to purchase the 16% stake held by the Burkard family for 2.75 billion francs. That would give them control of Sika, because that stake carries 52% of the firm's voting rights.
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(END) Dow Jones Newswires
October 31, 2016 06:02 ET (10:02 GMT)
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