Friday, June 29, 2012

Where do employees stand when a company is bought?

Puma Energy is in the process of buying KenolKobil. It remains to be seen how this deal will be finalised and how KenolKobil prospect will change with such huge capital injection. However and most importantly is the various players in the entire deal, both direct and indirect participants and stakeholders. In this regard several questions came to mind after i read that employees at KenolKobil have sued to stop the sale.

So, do the employees have a stake in the deal? If, yes what is the extent of their interest? How do we balance the rights of the corporation to seek strategic shareholders through such a deal and the rights of employees? What is the best mechanism of balancing such rights; negotiations or litigation in court? These thoughts will occupy my mind in the coming days and i hope to address all of them.

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