France’s Danone S.A. is looking to take over Lifeway Foods, Inc., where it currently owns 23%. Edward Smolyansky, brother of Lifeway CEO, supports the deal and aims to replace the board. Danone threatens to vote in favor of new board if talks fail. Analysis shows discrepancies in board nominees’ credentials.

Danone is in talks with Lifeway Foods, Inc. for a potential takeover. Lifeway has rejected offers of $25 and $27 per share. Edward Smolyansky, a former COO, is supporting the deal but has proposed board nominees with questionable backgrounds. Danone is considering voting in favor of new board members if Lifeway does not agree to the takeover.

Nominee Cindy Curry’s credentials in an SEC filing do not match her actual experience. Curry clarified that she was CFO of a division, not the companies listed. Another nominee, George Sent, advised on the sale of another company to Danone. Nominee Michael Leydervuder has faced challenges with multiple companies in Illinois.

Edward and Ludmila Smolyansky have started a potential rival to Lifeway called Lucy’s Organics. The challenger board may sell the company to Danone, leaving minority shareholders concerned about potential financial losses. Danone’s backing of the challenger board raises questions about proper corporate governance.

The nomination of board members with discrepancies in their credentials raises concerns about proper corporate governance. Danone’s endorsement of the challenger board may pose a risk to Lifeway shareholders. Charles Elson, Founding Director of the Weinberg Center for Corporate Governance, emphasizes the importance of vetting candidates for director roles carefully.

Read more at Yahoo Finance: Did Danone Skim Over the Details at Lifeway? Dairy Giant May Not Have Vetted Directors with Care