Emerson wins Astec row

Emerson wins Astec row
Richard Wilson
A four month legal battle between the shareholders of power system manufacturer Astec (BSR) has ended in the High Court with victory for majority shareholder Emerson Electric of the US.
Several minority shareholders in Astec, including insurers Norwich Union and Equitable Life, had accused Emerson of unfair practice and ‘bullying’ tactics when it announced plans to buyout their shareholding at no premium to the market value of their shares.
A High Court judge threw out the petition on the grounds that it was ‘unsustainable’. Emerson said its action had been ‘vindicated’. The case had become a test case in investment circles, whereby minority shareholders in a firm challenged the actions of a majority shareholder.

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