The Shareholders VoteWednesday, Jun 13, 2001
It’s out in black and white, the governments clear statement on what it will do and what it wants
from its offer to legislate for the restructuring of the industry.
Good offer or bad offer – only the future will really tell. But whatever the out come of Mondays
vote it will set in place a new responsibility for individual shareholders to drive the direction
and demand the success from the resources built up by the dairy industry over the past 125 years.
It is not a responsibility that should be taken lightly by shareholders who are now showing a degree
of frustration with the decision process leading up to the merger. The seeming neglect of shareholders
by industry leadership, who chose not to involve shareholders during the period of the “phoney
war” as old scores were being settled and clear leadership and decision-making avoided
as the merger deal was formulated is a culture cannot be tolerated in the future.
It is in the hands of the shareholders to ensure a cabal does not survive to carry forward the dissent
and dissatisfaction that has tainted earlier mergers – such as still festers from the Tui
– Kiwi merger.
Shareholders have been bombarded with market theory and business practice ideals that in many instances
have blurred the necessary objectivity that needs to be applied to this decision.
If such a momentous merger was confronting, say Coco Cola type company , you can be certain the merger
and the monopoly would proceed (particularly because it has government’s blessing) and the
social responsibilities and market imperfections sorted out after the event – but always in
the interests of the company and the shareholders.
Without the formation of GlobalCo we will never know if it could have been a successful venture or not.
Without its formation there is only lesser ventures to strive for and make successful.