Invesco drops plan to shake up India’s Zee, citing Sony merger plan

Invesco, which owns nearly 18% of Zee, has been battling for months against the Indian firm to call a shareholders’ meeting to oust its chief executive officer

Invesco, which owns nearly 18% of Zee, has been battling for months against the Indian firm to call a shareholders’ meeting to oust its chief executive officer

US investment firm Invesco on Thursday decided against urging India’s Zee Entertainment to shake up its top management, citing its support for a proposed merger of Zee with the local unit of Japan’s Sony group.

The news sent Zee shares up more than 16% in a subdued stock market.

Invesco, which owns nearly 18% of Zee, has been battling for months against the Indian company to call a shareholders’ meeting to oust its chief executive officer and appoint new independent board members over alleged corporate governance issues.

Denying any wrongdoing, Zee had pushed back such a meeting, thereby igniting the fight.

Although Invesco recently obtained an Indian court order allowing it to convene such a shareholder meeting, the US firm has now decided not to pursue the matter, citing the merger.

“Post completion of the merger, the board of directors of the newly combined company will undergo a fundamental reshuffle, thereby achieving our goal of strengthening board oversight of the company,” Invesco said in a statement.

The US firm said it will continue to monitor the progress of the proposed merger and would reapply for a shareholder meeting at Zee if it fails.

Zee and Sony did not immediately respond to requests for comment from Reuters.

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