PARIS (Reuters) - Nassef Sawiris, the second-biggest shareholder and board member of French cement maker Lafarge (>> LAFARGE), said on Thursday that talks to save the planned tie-up with Switzerland's Holcim (>> Holcim Ltd) were "progressing well".
"What is being discussed now, with the support of both boards and all key shareholders, is to restore a transaction that is to the letter of the word a merger of equals," said Sawiris in a telephone interview.
The conflict between Lafarge and Holcim broke into the open this week when Holcim contested the deal price and leadership of the new firm, and said it would not go forward if the share exchange ratio and governance were not revised.
Lafont's planned nomination at the head of the new company has become unacceptable for the Swiss, sources have said, with concerns over his management style and financial track record.
They are now discussing making Lafont the co-chairman alongside Wolfgang Reitzle, the current chairman of Holcim, sources said on Wednesday.
Sawiris declined to comment on the ongoing negotiations in detail.
"As a shareholder I am supporting a transaction where Bruno Lafont plays a major role in new entity, and I believe that Holcim is of the same mind," he added.
"The CEO will be Lafont's handpicked successor," he said, refusing to say who it would be.
(Reporting by Leila Abboud; Editing by Andrew Callus)
