Gome dispute: who will be the winner?

Gome dispute: who will be the winner?
Sep 7, 2010 01:51
guestbusinessman	The power battle inside Gome seems reaching its climax now. Du Juan, the former chairman’s wife, was freed on parole after his husband has been sentenced 14 years’ imprisonment and fined 800 million yuan. His release indicates that she will manage the family's huge fortune and help Huang Guangyu force out Chen Xiao, the current CEO of Gome. On Sep 28, a temporary shareholders’ meet will be held as Huang Guangyu required. At the meeting, the shareholders will vote for Huang’s five motions including reorganizing the board and stripping Chen Xiao of his positions as Gome executive director and chairman of the board. Who will be the winner in the power battle?

Sep 7, 2010 01:51

guestbusinessman

The power battle inside Gome seems reaching its climax now. Du Juan, the former chairman’s wife, was freed on parole after his husband has been sentenced 14 years’ imprisonment and fined 800 million yuan.

His release indicates that she will manage the family's huge fortune and help Huang Guangyu force out Chen Xiao, the current CEO of Gome.

On Sep 28, a temporary shareholders’ meet will be held as Huang Guangyu required. At the meeting, the shareholders will vote for Huang’s five motions including reorganizing the board and stripping Chen Xiao of his positions as Gome executive director and chairman of the board.

Who will be the winner in the power battle?

Sep 8, 2010 23:18

LONELYJOURNEY
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Join Date: Oct 28, 2009
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Both sides have a chance to win the battle. Huang is the biggest shareholder of Gome. Besides, he is the owner of Gome trademark. And he has more than 300 shops across China. These shops are not owned by Gome. If Huang loses, he can get back Gome trademark and operate his own shops. It will be a great loss to Gome. The other investors also don’t want this happen.

Chen Xiao has gained the support of the members of the board. He is planning to increase issues in stocks. In this way, he can dilute Huang’s control in Gome.

Just wait and see.

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