Karl Schmutzer, chairman of Austrian manufacturer of man-made cellulose fibres Lenzing AG, has vehemently denied rumours concerning the sale of Lenzing to a strategic investor, in particular the Indian Birla Group.

Mr Schmutzer stated, "As a member of the management of B & C Holding GmbH, which holds an 88% stake in Lenzing AG, making it the biggest individual shareholder, I am able to confirm that we did not and will not hold sales talks of any kind concerning our share in Lenzing, neither with any strategic investor nor with any equity fund."

He added, “The strategy decided by the bodies of our company at its formation continues to remain unchanged: We are long-term key shareholders of major companies quoted on the Vienna stock exchange and we are committed to securing the continuity and expansion of these companies in a sustainable way.

Lenzing is a prime example of how appropriate our strategy has been and of how successfully we as owners' representatives implemented this strategy, jointly with staff and management. The investments made in the five years of our ownership caused the market capitalisation of the company to triple and jobs to be secured in a sustainable way."

He also suggested that the recurring rumours of a takeover are being spread by the company’s competitors and advised the management board to consider taking legal action.