Peru Funds Spar With Billionaire Over Cement Maker’s M&A Costs

Peruvian pension funds are legally challenging a local billionaire for shifting the costs of selling his controlling stake in the country’s second-largest cement maker onto shareholders, including workers’ pension accounts, rather than paying them himself. The dispute raises minority shareholder and governance risk for the company and could pressure the stock and pension fund holdings if regulators or courts rule in favor of the funds.

Analysis

Peruvian pension funds are legally challenging a local billionaire for shifting the costs of selling his controlling stake in the country’s second-largest cement maker onto shareholders, including workers’ pension accounts, rather than paying them himself. The dispute raises minority shareholder and governance risk for the company and could pressure the stock and pension fund holdings if regulators or courts rule in favor of the funds.