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Business
Shareholder Sues DSM Over Dividend
March 26, 2007
| A version of this story appeared in
Volume 85, Issue 13
Fund manager Franklin Templeton has asked the Amsterdam Court of Appeals to stop Dutch chemical firm DSM from issuing a "loyalty dividend" to owners who hold onto shares for at least three years. Stockholders are scheduled to vote on the proposal at the firm's annual meeting on March 28. The DSM proposal would pay long-term stockholders a 30% bonus above the average dividend over a three-year period. The U.S. fund manager, which controls 2% of DSM's shares, contends that the policy would discriminate against short-term stock owners and is against the law.
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