At an extraordinary general meeting on 31 January, the shareholders of Rosenthal AG of Germany overwhelmingly approved an increase in capital of 10% to be taken up by the Anglo-Irish company Waterfo…
At an extraordinary general meeting on 31 January, the shareholders of Rosenthal AG of Germany overwhelmingly approved an increase in capital of 10% to be taken up by the Anglo-Irish company Waterford Wedgwood, confirming the strategic alliance to be formed by the two companies. Shareholders also approved the removal of the 5% voting right restriction. Ottmar Kuesel, chief executive of Rosenthal, commented: “The current steps for restructuring will be complemented by Waterford Wedgwood“s expertise, thereby speeding up the process. This ideal partnership opens up the possibility of substantial international global progress for both parties in this industry sector.” Dr. Tony O“Reilly, chairman of Waterford Wedgwood, stated: “We are delighted at the successful completion of this first step in our alliance with Rosenthal. The Rosenthal name and the perfection of its products fit perfectly with the Waterford and Wedgwood brands. This is a long term alliance, with substantial effort needed to improve Rosenthal“s performance in the early years. I am positive that we will return Rosenthal to profitability to the advantage of its shareholders and employees and fuel Waterford Wedgwood“s growth in the global luxury brands market”. Urging shareholders to approve the measures, Kuesel had told the meeting that cooperation with Waterford Wedgwood would be a significant step towards returning the German group to profit. Rosenthal, which has undertaken considerable restructuring measures to try to improve its profitability, narrowed its net loss to DM 10.7 million in the first half of 1996 from DM 13.1 million a year earlier. Kuesel told the meeting that the outlook was improving. Sales had risen 2% in the second half after a fall of 8.2% in the first half. He added that an alliance with Waterford Wedgwood would be particularly beneficial as the two companies operations overlapped very little. The link-up would also give Rosenthal better access to overseas markets, he added.