FRANKFURT -- German supplier Grammer on Thursday warned that the creeping influence of a Bosnian investor has led to a decline in automotive orders and could pose a risk to the company's viability.
"Several major automotive OEMs are observing with great concern the Hastor family's investment in Grammer AG and its plans to exert influence on the company," Grammer said on Thursday as it pre-released first quarter results.
Carmakers had been holding back new contracts, resulting in a decline in new orders for the first time since 2010, Grammer said, warning that customers will be reviewing their business relations if Bosnia's Hastor family seeks to increase its influence at an upcoming annual general meeting.
"This would pose a substantial risk to the order situation and, hence, the company's future viability," Grammer said.
Bosnia's Hastor family, which owns a stake of at least 20 percent in Grammer, has criticized Grammer's management and campaigned for seats on the board of directors. Grammer's management have sought to rebuff Hastor's requests.
Grammer said on Wednesday that a German regional court had lifted the enforcement of a temporary injunction on the exercise of a convertible bond, through which the supplier had hoped to get a new strategic partner in China's Ningbo Jifeng. The German company's management had planned to bring Ningbo on board as a "white knight" against Hastor's influence.