The CEO who wouldn’t leave


I found that a recent article in BusinessWeek can be used as an interesting reading to explore power & politics in the context of M&A. The article describes how William Johnson was designated as CEO of Duke Energy after its acquisition of Progress Energy and how he was fired after only two hours. The original M&A agreement included a condition that stated that the CEO of the target (Progress Energy) would be named CEO of the merged company. However, he was fired two hours after the designation and the CEO of the acquirer (Duke Energy) was named CEO of the merged company. I think this article could motivate to further study this acquisition. It seems to be a novel illustration of a hostile acquisition.

 

Contributed by Francisco Morales

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