Germanischer Lloyd board rejects Bureau Veritas? hostile takeover bid

Germanischer Lloyd board rejects Bureau VeritasÆ hostile takeover bid The executive and supervisory boards of Germanischer Lloyd have advised their shareholders to reject the acquisition offer by French rival classification society Bureau Veritas submitted earlier this month.
   'We do not need Bureau Veritas. On the contrary: a hostile takeover would jeopardize the continuation of our business success thus far,' said Rainer Sch'ndube, Germanischer Lloyd executive board member.
   'I expect that, in the event of a takeover, many members of staff will look for a new employer,' Sch'ndube said. 'Should it come to this, Germanischer Lloyd would lose valuable technical know-how, while longstanding customers would lose their trusted personal contact.'
   Bureau Veritas intends the takeover to create one of the world's leading classification companies with more than 13,000 vessels in class around the world, and a market share of 16 percent in tonnage and 26 percent in number of vessels.
   'Germanischer Lloyd and Bureau Veritas are currently the two fastest-growing classification companies, but they remain middle-sized players in the global market,' said Frank Piedelievre, president and chief executive officer of Bureau Veritas when it submitted its offer Nov. 9.
   'An alliance between Germanischer Lloyd and Bureau Veritas would position both companies at the very forefront of the world's leading organizations in the maritime classification sector. Such a position would be particularly important in Asia, where major investment will be needed moving forward — particularly in China — to meet the needs of the fast-developing shipping industry.'