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Imprisoned boss steps up power struggle over GOME
By Wang Xiang |
August 18, 2010, Wednesday
|
Online Edition
Online Edition
THE internal tussle over the control of the giant electronics retailer GOME escalated as the company's imprisoned founder, Huang Guangyu, called on GOME employees to help him oust the company chairman Chen Xiao.
In a public letter allegedly written by Huang inside the prison and published today on sina.com.cn, he lambasted the company's current chairman Chen Xiao, accusing him of stealing GOME and trying to sell it to United States-based Bain Capital.
Huang, the once richest man on the Chinese mainland, is now serving a 14-year jail term after convicted of insider trading, illegal business dealings and bribery.
Huang said in the letter that Chen "stole the control of the company while his former boss was facing the biggest frustration in life."
Huang's duel with Chen could be traced back to 2009 when Chen took over Huang's post as chairman of GOME shortly after Huang's arrest.
Huang accused Chen of soliciting the US company Bain Capital behind his back to invest in the company. He also accused Chen of issuing new shares and offering option rights to high ranking company officials without "considering the interest of other shareholders."
These moves by Chen were all interpreted as aiming at diluting Huang's influence in the company. Huang now still owns 31.6 percent of GOME's shares. He has demanded a special meeting of the shareolders to cancel Chen's moves. The meeting is secheduled for August 25.
In a public letter allegedly written by Huang inside the prison and published today on sina.com.cn, he lambasted the company's current chairman Chen Xiao, accusing him of stealing GOME and trying to sell it to United States-based Bain Capital.
Huang, the once richest man on the Chinese mainland, is now serving a 14-year jail term after convicted of insider trading, illegal business dealings and bribery.
Huang said in the letter that Chen "stole the control of the company while his former boss was facing the biggest frustration in life."
Huang's duel with Chen could be traced back to 2009 when Chen took over Huang's post as chairman of GOME shortly after Huang's arrest.
Huang accused Chen of soliciting the US company Bain Capital behind his back to invest in the company. He also accused Chen of issuing new shares and offering option rights to high ranking company officials without "considering the interest of other shareholders."
These moves by Chen were all interpreted as aiming at diluting Huang's influence in the company. Huang now still owns 31.6 percent of GOME's shares. He has demanded a special meeting of the shareolders to cancel Chen's moves. The meeting is secheduled for August 25.
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