LONDON, 08/09/06 - Two large shareholders of Stork are demanding that the industrial conglomerate focus solely on Aerospace. The Print, Technical Services and Food Systems divisions should be sold immediately, according to hedge funds Centaurus and Paulson & Co.

Centaurus and Paulson & Co yesterday called for an extraordinary shareholders meeting, to be held no later than 19 October, to present their plans on future strategy to management. Centaurus and Paulson own a combined stake of 32.4 percent in Stork and say they will continue to act in concert.

Stork had already held an extraordinary meeting on Tuesday to explain the results of the investigation into a bourse exit to shareholders. This resulted earlier this year in the company deciding to keep its listing. During Tuesday's meeting, CEO Sjoerd Vollebregt again reiterated that the company rests on three pillars: Aerospace, Food and Technical Services.

Representatives of Centaurus and Paulson & Co remained silent at the meeting on Tuesday, but made their position clear in a press statement yesterday. This is very different from what management of Stork has in mind. "We have repeatedly told management that it must introduce a strategy with more focus."

According to Paulson and Centaurus, the separate parts of the company are in themselves strong activities but the umbrella structure hampers their full development. "As a result, Stork remains undervalued on the market." The combination of the divisions under a single umbrella makes no sense. "The company has also been unable to demonstrate any perceptible synergy."