UPDATE 1-Linde CEO defends Praxair merger at shareholder meeting

* CEO: Merger will create value especially for shareholders

* Says the plan has great support in Linde workforce

* 12th-largest investor: Wants merger but not at any price (Adds details on CEO, fund manager comment)

MUNICH, May 10 (Reuters) – The chief executive of German industrial gases group Linde defended a planned $70 billion merger with U.S. peer Praxair at the company’s annual shareholder meeting, despite fierce trade union opposition that has raised investor concerns.

Aldo Belloni said on Wednesday the merger would create value “for everyone involved, especially for you the shareholders,” adding his voice to that of Chairman Wolfgang Reitzle, who is widely seen as the driver of the deal.

“I’ve been with this company for 37 years and know countless colleagues in Germany and abroad personally. I can assure you that the planned merger also has great support in the Linde workforce,” Belloni told the AGM in Munich.

Belloni was brought out of retirement by Reitzle to take over as CEO after a previous attempt at merger talks with Praxair failed last year, leading to the departure of the then-CEO and finance chief.

Labour representatives are battling a dilution of their influence under the planned establishment of a headquarters for the holding company in a European country outside Germany, which gives a uniquely strong say to workers in strategic decisions.

Some shareholders are concerned that the strife over the planned all-share merger of equals is distracting Linde management from operations, and that the new company cannot succeed without employees’ buy-in.

“We want the merger, but not at any price,” said fund manager Ingo Speich of Union Investment, the 12th largest shareholder in Linde with just under 1 percent of shares.

“If you can only buy the agreement of the labour side in the supervisory board through such massive concessions that the new company will be weakened in the long term and the capital-market logic no longer exists, then you should break off the merger talks,” he said in remarks prepared for the AGM. (Reporting by Georgina Prodhan; Editing by Maria Sheahan)

Article Courtesy of CNBC