Competing visions of stork: the role of active investors
Author: Haspeslagh, Philippe ; Brodie-Smith, JustinINSEAD Area: StrategyPublisher: Fontainebleau : INSEAD, 2007.Language: EnglishDescription: 24 p.Type of document: INSEAD CaseNote: Latest version available via https://publishing.insead.eduAbstract: The case discusses a conflict over strategy between the management and Supervisory Board of Stork - a Dutch diversified company active in aerospace, food systems, technical services and prints - and two hedge funds, Centaurus and Paulson, which since 2004 had built a sizeable stake in the company. When an announced delisting and sale to private equity buyers failed, and management announced its intention to stick to a diversified strategy, the hedge funds decided to press the issue of a focus on aerospace. In October 2006, the hedge funds succeeded in getting a majority at the AGM for their proposal to focus the company on aerospace. Nevertheless management, supported by the Supervisory Board, continued to consider such a strategy too risky, and the vote as non-binding. In what became one of the bitterest disputes over corporate governance in Dutch history, the Enterprise Chamber of the Court of Amsterdam took the unprecedented step of appointing "three wise men" to the Supervisory Board of Stork, with a deciding vote in matters of strategy. In the meantime, Marel, an Icelandic food machinery company, had also built up a sizeable stake, hoping to be able to improve its chances of buying the food systems division of Stork.Pedagogical Objectives: . Help participants to gain insight into the dynamics of hedge funds . Explore issues of corporate governance and the role board members play . Explore the difference between shareholder and stakeholder perspective on corporate strategy . Explore the respective roles of investors, board members and managers in determining corporate| Item type | Current location | Collection | Call number | Status | Date due | Barcode | Item holds |
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Latest version available via <a href=https://publishing.insead.edu>https://publishing.insead.edu</a>
. Help participants to gain insight into the dynamics of hedge funds
. Explore issues of corporate governance and the role board members play
. Explore the difference between shareholder and stakeholder perspective on corporate strategy
. Explore the respective roles of investors, board members and managers in determining corporate
The case discusses a conflict over strategy between the management and Supervisory Board of Stork - a Dutch diversified company active in aerospace, food systems, technical services and prints - and two hedge funds, Centaurus and Paulson, which since 2004 had built a sizeable stake in the company. When an announced delisting and sale to private equity buyers failed, and management announced its intention to stick to a diversified strategy, the hedge funds decided to press the issue of a focus on aerospace. In October 2006, the hedge funds succeeded in getting a majority at the AGM for their proposal to focus the company on aerospace. Nevertheless management, supported by the Supervisory Board, continued to consider such a strategy too risky, and the vote as non-binding. In what became one of the bitterest disputes over corporate governance in Dutch history, the Enterprise Chamber of the Court of Amsterdam took the unprecedented step of appointing "three wise men" to the Supervisory Board of Stork, with a deciding vote in matters of strategy. In the meantime, Marel, an Icelandic food machinery company, had also built up a sizeable stake, hoping to be able to improve its chances of buying the food systems division of Stork.
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