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(Bloomberg) -- More than 100 senior managers at Sika AG, the Swiss adhesives maker seeking to block a takeover by Cie. de Saint-Gobain SA, have spoken out against the 2.75 billion-franc ($3 billion) deal in a letter to the French company’s chief executive officer.
Merging Sika into Saint-Gobain would result in a clash of corporate cultures, demotivating managers and employees, according to a copy of the letter obtained by Bloomberg News. “A considerable number of key managers have already signaled that they would consider leaving the company if the proposed transaction would go ahead as planned,” according to the letter, signed by each manager.
Saint-Gobain is facing resistance to its planned purchase of a 16 percent stake with majority voting rights in a deal with members of Sika’s founding family. While a threat to stand down by Sika CEO Jan Jenisch hasn’t persuaded the French company to walk away from the transaction, it will be a worry that Sika’s country and senior managers in the field are speaking out against the deal.
Sika is outperforming most rivals because it’s “extremely decentralized,” the letter reads. “In our view, Saint-Gobain is in many ways the opposite and does not have such outstanding track records: The company is managed in an administrative and centralistic way. The expansion is rather slow and the business results are not convincing.”
A spokeswoman for Saint-Gobain didn’t immediately respond to a phone message seeking comment.
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