Russian retailer Lenta may see the corporate battle for its control settled in court after its biggest shareholder asked local prosecutors to investigate the latest claimant to the Chief Executive post, Reuters reported.
Rival shareholder groups have been at loggerheads for weeks over who should be CEO of the company, recently touted as a potential acquisition target of Walmart. Lenta’s biggest shareholder with 41% is US businessman August Meyer. Meyer had ousted CEO Jan Dunning in favour of his own candidate, but Dunning last week regained control of the company after a violent brawl between his bodyguards and security. Dunning is backed by a range of shareholders including private equity group TPG, Russian bank VTB and EBRD, who together own more than 40% of the chain.
Lenta, once the leading hypermarket operator in Russia, is gradually losing its market share in the sector and it has opened only one store this year. In 2009, Lenta’s revenues increased by 9% in rouble terms year-on-year, whereas its rival O’key reported a revenue growth of 33%.
