After winning an Indian court battle to uphold its right to call a shareholder vote at broadcaster Zee Entertainment , Invesco has decided against wielding its 18% stake to hold a ballot. Originally, the U.S. fund manager wanted to oust boss Punit Goenka. That’s now redundant after Zee agreed to a $7 billion merger with Sony Pictures Networks India that will rejig the board and help to check the influence of the media tycoon. Invesco did well to get this far. Stepping back increases the chance the Sony deal to create a media powerhouse will get completed.
has decided against wielding its 18% stake to hold a ballot. Originally, the U.S. fund manager wanted to oust boss Punit Goenka. That’s now redundant after Zee agreed to a $7 billion merger with Sony Pictures Networks India that will rejig the board and help to check the influence of the media tycoon. Invesco did well to get this far. Stepping back increases the chance the Sony deal to create a media powerhouse will get completed.
A first-time activist, Invesco’s initial intervention was clumsy, coming only after its push for an alternative union with part of Mukesh Ambani’s Reliance Industries failed. Zee rejected the fund’s demands, taking the standoff into court for an important wider test of shareholder rights. A 17% jump in Zee shares on Thursday underscores relief all around that Invesco is ready to stand down; overall the stock is 63% above its undisturbed price from September. A solid result for Indian corporate governance, and not bad for Invesco.