Major shareholder said to reject terms of Holcim-Lafarge merger

The merger between Swiss firm Holcim and French group Lafarge to create the world's largest cement company has reportedly been rejected by 10.8% Holcim stakeholder Filaret Galchev.

According to a Swiss newspaper, a source said the Russian businessmann, who owns his stake in the company through Eurocement Holding, has deemed the terms of the deal to be "not satisfactory and half-baked".

The publication said Galchev feels that despite the agreement of a new share-swap ratio that is more in favour to Holcim investors than the original deal, it is still more advantageous to Lafarge shareholders.

The original agreement was a one-for-one share swap, but was changed to nine Holcim shares for every 10 Lafarge shares.

Questions had also been raised over the future chief executive will be and it was agreed Lafarge chief executive Bruno Lafont would not take on the role following the merger.

It has since been announced that he will take on the role of non-executive co-chairman, but neither company has named the new chief.

The deal requires two-thirds of shareholders to approve the terms at a meeting that is due to take place in early May.