October 16, 2018 / 6:30 PM / a month ago

Aryzta says Cobas proposal inadequate, presents "execution risk"

ZURICH, Oct 16 (Reuters) - Aryzta said a proposal by its biggest shareholder, Cobas Asset Management, to increase the company's capital by 400 million euros ($463 million), half the amount the board wants, was inadequate and presented significant execution risk.

"The Board of Directors and executive management of Aryzta remains firm and unanimous that 800 million euros of equity capital is required to reduce its excessive debt levels, strengthen its balance sheet and provide the necessary liquidity and working capital funding to deliver on its multi-year turnaround plan," the Swiss-Irish baking company said in a statement on Tuesday.

"The Board of Directors unanimously believes that the Cobas proposal is inadequate and presents significant execution risk for shareholders," Aryzta said. ($1 = 0.8638 euros) (Reporting by Silke Koltrowitz; Editing by Alison Williams)

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