The case discusses a struggle over strategy between the Management and Supervisory Board of Stork, a Dutch diversified business active in Aerospace, Food Systems, Technical Services and Prints, and two hedge funds, Centaurus and Paulson, which since 2004 have develop a sizeable stake in the company. Management pronounces it intention to stick to a strategy that is diversified, and when an announced delisting and sale to private equity buyers fails, the hedge funds determine to press the issue of a focus on aerospace. In October 2006 the hedge funds triumph in getting a majority at the AGM for their proposition to focus the business on aerospace.
Yet management, supported by its Supervisory Board, continues to consider this kind of strategy as too high-risk, and the vote as non-binding. Meanwhile, Marel, an Icelandic Food machinery firm has additionally develop a sizeable stake, hoping to be able to enhance its chances of buying the Food Systems Division of Stork.
PUBLICATION DATE: September 01, 2007 PRODUCT #: INS356-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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