In mid-1993, representatives of Rhône-Poulenc, a leading nationalized French firm, has worked with the French government to plan the privatization of the company. One aspect of the privatization was to create incentives for employees to buy and hold shares in the company. Partial privatization earlier in 1993 showed that the workers do not want to carry out actions, even after rebates and subsidized financing. Key financial officers of the company received an offer from the target bankers who offer employees a unique investment in the company, which could increase employee participation in the share offer. This option guarantees employees a minimum rate of return still allow them to enjoy an assessment of the company. CFOs need to decide whether to offer this employee stock ownership alternative French Government and the Council of Rhone-Poulenc for inclusion in the forthcoming privatization. "Hide
by Donald S. Collat, Peter Tufano Source: Harvard Business School 18 pages. Publication Date: October 11, 1994. Prod. #: 295049-PDF-ENG
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