Danone said the decision to grant Smolyansky additional shares represents the board’s latest effort to prioritize the CEO’s “personal interests to trump those of the company and its other shareholders.” The food manufacturer contended that Lifeway “has already wasted millions of dollars of the shareholders’ money” on Smolyansky. Danone pointed out that Lifeway has spent money to support her litigation against her are ferrous fumarate iron tabletsfamily, to pay her “outsized” compensation package and to pay her husband a six-figure salary to serve as her chief of staff.Danone said the granting of neferrous gluconate oral tablet 324 38 fe mgw shares comes after Lifeway amended the CEO’s employmentferrous fumarate liquid iron agreement “to lavish Ms. Smolyansky with an outsized severance and other benefits that will further dilute the public shareholders in any change-of-control transaction.”“Having seen the heightened potentiality of a sale of the company, the board has seemingly greenlit a value-destroying gifting program for the CEO in blatant violation of the Shareholder Agreement,” Danone said in the letter.Lifeway claims the shareholder agreement it has with Danone is invalid because it violates Illinois state law. The company said it intends to “pursue all available remedies to enforce Illinois law and nullify the agreement.” Danone argues the contract remains in place and urged Lifeway to “rescind the improper” issuance of stock.“Given Danone’s unsolicited and opportunistic proposal to acquire Lifeway, the Company and its outside advisors are looking at the relationship between the parties and assessing how to best protect the interests of the Company and its shareholders,” Lifeway said in a statement.Danone is no stranger to producing healthy dairy products, with a yogurt portfolio that includes probiotic-focused Activia and low-sugar Too Good yogurts. Adding the fast-growing Lifeway and its better-for-you offerings would complement these and other products already in Danone’s portfolio. It also would be able to tap into its strengths, including its global scale, to further grow Lifeway’s products.Lifeway’s portfolio of kefir and fermented probiotic products has grown rapidly in recent years as consumer interest in gut health, protein and probiotics intensifies. It has posted 21 consecutive fiscal quarters of growth and has increased sales from $94 million in 2019 to a projected $185 million to $186.5 million in 2024.Lifeway said in its statement that it rejected Danone’s offer because it “severely undervalues the Company.” Lifeway added that it does not oppose a sale at a price that better reflects the value manfaat ferrous fumarate folic acidof its business. In addition, Lifeway said its board continues to back its CEO and notes that her leadership “is critical to ensuring the success of the Company’s standalone buis ferrous bisglycinate a good iron supplementsiness plan.”
Danone accuses Lifeway of allowing its CEO to engage in ‘self-dealing’ and ‘value destruction’
