Korea Zinc management excludes Young Poong39;s voting rights
Young Poong, MBK vow to hold Korea Zinc responsible for invalid shareholders39; meeting
Takeover battle pits two founding families against each other

SEOUL, Jan 23 Reuters Korea Zinc held a special shareholders39; meeting on Thursday to elect new board members, opening another chapter in a bitter fourmonth takeover battle for the world39;s top refined zinc producer.

In the meeting finally held after hours of delay, however, Korea Zinc management said its rival and major shareholder Young Poong does not have voting rights, causing consternation from representatives of Young Poong and its takeover partner, private equity firm MBK Partners.

Young Poong and MBK have been attempting to wrest control away from Korea Zinc39;s current management, led by Chairman Yun B. Choi, since September and have amassed a 40.97 stake in the firm, according to a December regulatory filing.

Korea Zinc39;s Choi has an estimated 34.42 backing him, according to local media.

Attempting to control the board, Young Poong and MBK have proposed 14 new candidates, while Korea Zinc39;s management has nominated seven. The firm currently has 13 board members, with one board member having tendered their resignation.

As the shareholders39; meeting began, Korea Zinc management said Young Poong39;s shares would be excluded from voting. Young Poong had a 25.42 stake in Korea Zinc as of a December filing.

The reason cited for the exclusion…