AMSTERDAM, THE NETHERLANDS: British pension manager Hermes Fund Managers Ltd has cut it stake in Dutch semiconductor equipment company ASM International to just over 7 per cent, according to a regulatory filing on Wednesday.

That was down sharply from the 13.17 per cent Hermes held as of late July and the 9.98 per cent it held in early July, according to documents filed with the market regulator AFM. A Hermes spokeswoman was not immediately available to comment.

ASMI shares, which have been sensitive to Hermes's moves, traded 2.4 per cent lower at 13.08 euros by 0746 GMT, underperforming a flat Amsterdam midcap index .

With a market capitalization as of Tuesday's close of 727 million euros ($1.05 billion), ASMI is worth less than the 53 per cent stake it holds in ASM Pacific Technology Ltd.

Hermes and ASMI have been engaged in a long-running court battle over the company's management and performance. Hermes had asked for an investigation last year after a foundation set up to protect ASMI's independence obtained almost 30 per cent of its share capital.

In May, shareholders voted to cancel the preference shares issued to the management-allied foundation, but kept the option to issue them again in the future.

Hermes's position in ASMI rose in July after the cancellation of those preference shares.

Last month, the Dutch commercial court ordered an investigation into the steps the company took last year to preserve its independence.

ASMI shares, which hit an 11-month high on Tuesday, are up more than 30 per cent since a local market bottom on July 13. That is roughly in-line with the broader Amsterdam midcap index.