The recent announcement of Elder’s accounting discrepancies, valued at $18 million, has cleared the way for rival Ruralco to close in on the company’s live cattle-trading sector.
Ruralco which already holds a 12% share in the company, this week poached seven of Elders’ top staff to set up its own live cattle trading operation, following news of the cattle discrepancies.
Hamish Browning, Elders general manager of meat and livestock, is one of the seven staff leaving for Ruralco but will serve out their contractual obligations.
However chief executive Malcom Jackman has said he will fight for Elders and that the company will use the full weight of the law to ensure its rights are protected on issues of confidential information, reports the AFR.
“I’m certainly not walking away from it. I don’t mind losing if it’s a clean fight,” said Jackman.
Ironically, the crisis arose when Jackman was attending live cattle exports talks in Indonesia with Prime Minister Tony Abbott which resulted in Indonesia agreeing to take on an extra 53,000 cattle on top of original quotas, reports the AFR.
The Fin has more.
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