The largest shareholder in Aryzta, Cobas Asset Management, has requested an emergency general meeting (EGM) of the company to discuss an alternative plan for raising fresh capital required by the embattled bakery giant for a new turnaround plan.

Cobas, which has a 15% stake in Aryzta, has proposed an alternative plan where Aryzta would raise €400m in new capital via a rights issue, which is half the €800m that Aryzta management believe is required to turn the company around.

"Cobas cannot defend actions that lead to such destruction of shareholder value as would occur through the highly dilutive capital increase proposed by the Aryzta's board of directors," a statement from Cobas read.

Cobas said it is asking Aryzta management to sell €250m worth of non-core assets for which it says a “ready buyer at reasonable price” is available.

The Madrid-based asset management group said if its plan failed and Aryzta required a further cash injection in the next 12 months, it would support the board’s original plan and raise a further €400m via issuing more shares.