Invesco, which owns nearly 18% of Zee, has for months pursued a legal battle against the Indian firm to call for a shareholder 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 on any such meeting, sparking the battle.
Though Invesco recently won an Indian court order allowing it to call such a shareholder meeting, the U.S. firm has now decided to not pursue the matter, citing the merger. "Following the merger's consummation, the board of the newly combined company will be substantially reconstituted, which will achieve our objective of strengthening board oversight of the company," Invesco said in a statement.
The U.S. firm said it would continue to monitor the proposed merger's progress, and if it fails, it could again request a shareholder meeting at Zee.Register now for FREE unlimited access to Reuters.comMore from ReutersSign up to our tech newsletter to get the latest news and trends in the global technology industry.