Hi Terry, Nothing new on the CEO issue. Hope that LGE realizes that their best interests are served by bringing in an independently strong leader versus a LGE insider.
For LGE to meet one of its top priorities, attracting additional worldwide partners, it first needs to demonstrate the success of its Zenith partnership.
To date, LGE has been an exemplary partner providing Zenith with management, staffing, technology and short-term financial assistance as well as serving as an excellent manufacturing co-equal.
If I was heading LGE, I'd do my best to build value into Zenith including making every effort to increase the market value of ZE. I then would seek a European partner to purchase a total of 20% in ZE, for approximately $25 per share. I'd still own 38% of ZE (at no cost) and gain a strong technology and marketing power in Europe to serve as another outlet for LGE products and to share tech advancements.
The entire tech world is looking at the LGE/Zenith partnership. If LGE is successful in its ability to restore Zenith as a great CE and network power, its status will be greatly enhanced, with future partners seeking out LGE. Conversely, if LGE merely picks off the cream of ZE and doesn't support the company in an hour of need, LGE will be looked at nothing more than a CE piranha, to be avoided at all costs.
John Koo, LGE CEO, is a very intelligent and compassionate leader. If Zenith happens to need additional, short-term financial assistance, he will step up to the plate. To me, that's a sure bet... |
