German media company Constantin Medien has said it has reached an agreement to end all legal proceedings in the Swiss courts with its subsidiary, Highlight Communications.
The two parties have been at odds after Constantin resisted a capital increase planned by Highlight, which is intended to reduce the German company’s stake in the firm from around 43.6 per cent to about 32.7 per cent.
Highlight has agreed to reverse the foundation structures installed as means of defence against hostile takeovers, which had been granted options for the temporary purchase of the majority of the common shares and particularly the voting rights in the Team Marketing agency, as well as Constantin Film.
Constantin said that no further legal proceedings will be taken against the execution of the capital increase at Highlight which will result in the reduction of Constantin’s stake.
Constantin said in a statement: “The resolution of the Management Board was enacted after a diligent, comprehensive and critical review of the objectives pursued with the legal disputes and their prospects of success from a current perspective.
“This is carried out in order to relieve the company, both financially and operationally, and to entirely re-concentrate the resources on focusing the operational business activities.”
Team Marketing is controlled by Highlight Communications and holds a long-term agreement with Uefa, European football's governing body, under which it serves as the exclusive agent for the global marketing of commercial rights relating to the Champions League, Europa League and Super Cup club competitions.