Teamsters Challenge Continental Board Member's Conflicts of Interest; Shareholders Question Bonderman's Plans to Acquire Stake in Competitor
May 14, 2003 11:32:00 AM ET
HOUSTON, May 14 /PRNewswire/ -- Employee-shareowners challenged Continental Director and former Chairman of the Board David Bonderman about potential conflicts of interest at the Airline's Annual Meeting.
Bonderman, President of Texas Pacific Group (TPG) -- which once held controlling interest in Continental Airlines CAL, has announced intentions to acquire large stakes at competitor airlines: United UAL and Air Canada.
"Our directors are duty bound to look after the best interests of Continental shareholders," said Rodney Rhodes, Continental mechanic and President of Teamsters Local 19 which represents Continental workers, "Not the shareholders of other companies."
Recent corporate scandals like that at Enron have shareholders looking closer than ever at the behavior of Corporate Directors to ensure that their holdings are secure in the hands of Board members. The federal government has taken some steps to protect investors from conflicts of interest but the issue raised by Continental employee shareowners today is an issue that has not been addressed.
Bonderman's Texas Pacific Group has made a name for itself in acquiring majority ownership of struggling airlines and turning the airlines around. TPG's financial investment leads to Board seats for TPG executives, as is the case at Continental and America West Airlines AWA. Though TPG has sold its controlling interest in Continental, Mr. Bonderman and Mr. Price, another partner at TPG, still hold Board positions. The potential for conflicts of interest arise from Board members' access to highly privileged business information that should not be shared with the competition as well as by the differing levels of ownership by the individual board members or by TPG at the competing airlines.
"We are on the front lines every day working to protect our airline in a flailing economy," said Robert Rasch, Continental mechanic and shareholder. "I don't believe saving our competition helps Continental workers or shareholders."
Founded in August 1903, the International Brotherhood of Teamsters is celebrating its 100th year as a representative and advocate for working families.
© 2003 PRNewswire
May 14, 2003 11:32:00 AM ET
HOUSTON, May 14 /PRNewswire/ -- Employee-shareowners challenged Continental Director and former Chairman of the Board David Bonderman about potential conflicts of interest at the Airline's Annual Meeting.
Bonderman, President of Texas Pacific Group (TPG) -- which once held controlling interest in Continental Airlines CAL, has announced intentions to acquire large stakes at competitor airlines: United UAL and Air Canada.
"Our directors are duty bound to look after the best interests of Continental shareholders," said Rodney Rhodes, Continental mechanic and President of Teamsters Local 19 which represents Continental workers, "Not the shareholders of other companies."
Recent corporate scandals like that at Enron have shareholders looking closer than ever at the behavior of Corporate Directors to ensure that their holdings are secure in the hands of Board members. The federal government has taken some steps to protect investors from conflicts of interest but the issue raised by Continental employee shareowners today is an issue that has not been addressed.
Bonderman's Texas Pacific Group has made a name for itself in acquiring majority ownership of struggling airlines and turning the airlines around. TPG's financial investment leads to Board seats for TPG executives, as is the case at Continental and America West Airlines AWA. Though TPG has sold its controlling interest in Continental, Mr. Bonderman and Mr. Price, another partner at TPG, still hold Board positions. The potential for conflicts of interest arise from Board members' access to highly privileged business information that should not be shared with the competition as well as by the differing levels of ownership by the individual board members or by TPG at the competing airlines.
"We are on the front lines every day working to protect our airline in a flailing economy," said Robert Rasch, Continental mechanic and shareholder. "I don't believe saving our competition helps Continental workers or shareholders."
Founded in August 1903, the International Brotherhood of Teamsters is celebrating its 100th year as a representative and advocate for working families.
© 2003 PRNewswire
