Michelin halts investment in Polish tire maker

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."