James Hardie Industries (ASX:JHX) saw its stock price plummet 8.18% in intraday trading, as investor backlash intensified over the company's recently announced $14 billion merger with US-based Azek. The sharp decline comes as shareholders express growing concerns about the deal's structure and potential impact on the company's value.

The controversy stems from the board's decision to bypass a shareholder vote on the merger, despite using local investors' cash and new shares to fund the deal. This move has sparked outrage among Australian shareholders, who feel sidelined in a major corporate decision. Critics have labeled the merger as "value-destructive," citing concerns about excessive risk and a departure from James Hardie's successful organic growth strategy.

In response to the mounting pressure, Chairwoman Anne Lloyd is set to meet with major institutional investors to address their concerns. These meetings mark the first direct engagement between the board and shareholders since the deal's announcement on March 24, which initially triggered a 12.5% drop in James Hardie's share price and wiped more than $5 billion from its market value.

Investors are particularly frustrated by what they perceive as poor communication from the board and the company's application for foreign exempt status on the ASX, which would free it from local listing rules. Some shareholders are even considering calling an extraordinary general meeting to push for board changes, highlighting the severity of the situation and its potential long-term implications for James Hardie's governance and strategy.