A merger between a manufacturer of animal health products and a smaller vaccine manufacturer led to a suspicious plane crash killing the CEO, revealing potential sabotage and resulting in a high-stakes shareholder dispute.
Client. Manufacturerof animal health products merged with a smaller manufacturer of vaccines forcattle.
Problem. CEOof the group was killed in a small plane crash when going to meet the minority partnerand former owner of the vaccine manufacturer to discuss the latter’s contingentliabilities not disclosed during the merger negotiations. Under the mergeragreement, the minority shareholder renounced management responsibility in themerged group to the majority shareholder. The only way he could re-assumea management role was if the CEO died.Following the crash, the minority partner attempted to wrest control of the companyfrom the deceased’s heirs. The shareholders dispute was deadlocked in thecourts.
Solution.Wolfe Associates’ investigation revealed circumstantial evidence that the planecrash in which the CEO and pilot were killed, may have been caused by sabotage.The that the person who would benefit most from the CEO’s death was the formerowner of the vaccine manufacturer to whom could be attributed motive. The StateProsecutor who was leading the accident enquiry was persuaded to keep the caseopen while the Wolfe Associates concluded its investigation. Faced with apossible murder accusation, the former owner agreed to a negotiated settlement.
The names of those involved havebeen withheld for reasons of confidentiality.
Is your company a party to a shareholderdispute? Is there a suspicious death? Are your company or its executivesvictims of extortion or blackmail? Does your company or your family find itselfembroiled in a situation to which there is no conventional solution? WolfeAssociates specialises in managing special situations.
Tags: Suspicious death. Corporate killing.Shareholder dispute. Crisis Management.
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