Following Osram’s announcement last week that the company is to invest EUR 1 billion in a new Malaysia-based plant for LED chips, a leading investor in Osram expressed opposing opinions about Osram’s latest strategy, reported Reuters.
Michael Muders, fund manager at Union Investment, Osram’s fifth- largest shareholder with nearly two percent of the company’s share, stated that the new strategy caused disappointment among shareholders and increased their distrust of Osram’s management team.
Investors hope the company would invest in profitable niches, including automobile and streetlight products rather than focusing on the production of LED chips for lights in Malaysia.
Osram has restructured in order to compete with Asian manufacturers.
Osram’s share dropped by a quarter after the company released its latest plan last Wednesday. And it barely recovered on the day.
According to Muders, the strategy is very unlikely to be altered and he would take disapproval stance from Osram’s boards at the next shareholder meeting if the company’s strategy remained unchanged.
