Mordashov Board Ally at TUI Under Threat

FRANKFURT -- Pressure mounted on TUI on Tuesday to ax its supervisory board chief after Norwegian shipping tycoon John Fredriksen said he would not take a seat on the board if JЯrgen Krumnow did not quit.

"We don't want to work with a supervisory board that would continue the cronyism of [TUI chief executive Michael] Frenzel and Krumnow," said a spokesman for Fredriksen, who is TUI's biggest shareholder.

TUI's biggest shareholders were at loggerheads with each other and management before Wednesday's annual meeting at Europe's biggest tourism group, whose Hapag-Lloyd unit is the world's fifth-largest container shipping company.

Fredriksen, Norway's richest man, and steel tycoon Alexei Mordashov, Russia's second-richest man, are also expected to tussle at the meeting. Fredriksen wants two seats on TUI's supervisory board, but last week TUI appointed a Mordashov ally to its supervisory board, hampering Fredriksen's plans.

Mordashov, with 10 percent of TUI shares, supports Frenzel and wants to launch a strong tourism business in Russia and the Commonwealth of Independent States with TUI's help.

He and Spanish hotel group Riu, which owns about 5 percent of TUI shares, have said they do not support Fredriksen's ambition to win two seats on TUI's supervisory board.