CLERMONT-FERRAND, France (Feb. 21)—Groupe Michelin has halted new investment at its Stomil Olsztyn S.A. subsidiary until the outcome of a new audit into its running of the Polish tire maker. The move effectively freezes exports of Stomil products to the Michelin group at current levels. Michelin´s action is the latest twist in a long-running battle between Michelin and minority shareholders in Stomil. The shareholders are suing Michelin over its management of the Polish company, in which it has 66-percent stake. The lawsuits are linked to a report by auditors BDO suggesting the French group is running Stomil for its own benefit and not for shareholders as a whole. Michelin dismisses these allegations as "groundless," and said it can´t "continue to support Stomil's development until it is cleared of accusations of using illegal transfer pricing practices in contacts between Stomil and the Michelin Group."
Michelin halts investment in Polish tire maker
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