CHAPTER 3
9 August 2016
The previous week at Steele’s Ales there was a knock on Simon’s door but before he could open his mouth to say anything, the imposing figure of his uncle was already heading towards his desk.
“I can’t support this plan and nor will the other members of the Board. We have discussed this over and over recently and nothing changes anything. I didn’t build this business up to where I did it to see it snaffled from under our very noses by people who would not know decent beer if someone tipped a keg of the bloody stuff over their heads!”
Keith Steele was neither a man for small talk nor one who waited to be invited into someone else’s space. Simon would probably have been more offended by and animated at the rudeness of the chairman had he not long ago developed the ability to resist such behaviour. It was as if there was a vaccine for Keithitus of which Simon had received his protective jab many moons ago.
Steele’s Ales was still a wholly family-owned business, and Keith and Simon were the family representatives on the board of directors. The Board was made up of five people, the three additional directors having been appointed by the family to provide external corporate expertise. Simon would also have added privately that they played a mediation role whenever his uncle got on his high horse about anything, which was a regular occurrence and seemingly becoming more prevalent as the chairman aged, not altogether gracefully.
“I’m not so sure that the Board will be as much against it as you think, Keith. It is not every day that an offer which values your business at a 35% premium comes along. It is all about how to create shareholder value. Yes, it is the family business, but at some stage all kids leave home, and a different phase of your life begins.”
Keith glared at Simon, his trademark withering look evident all over his round red face.
“Old William would be turning in his grave, lad. How can you sit there blathering about shareholder value as if this was some tinpot operation rather than the family heritage? Well, my family heritage at least. It is quite clear that the name Steele means a lot less to you than it does to me. Mind you, maybe that’s because you are not actually a Steele, are you, Mr Letwin?”
Below the belt even by Keith’s low punching standards.
Simon remained calm. Keith was predictable. He was tempted to point out that Keith’s years as CEO had led to stagnation and declining performance rather than success. The business had lost its way by 2007, leading to Keith stepping back into the chairman role. It had taken Simon three years as incoming CEO to repair the damage, and only in recent years had growth returned. That was why companies like Vinbrew were now interested in acquiring Steele’s Ales.
As Simon considered the situation, he wondered if there was another reason Keith was so opposed to the sale. Was it purely emotional attachment, or something deeper hidden beneath the surface?
“Ultimately, Keith, the decision is neither yours nor mine alone, so I suggest we wait for the Board meeting next week.”
“Waste our breath? I’ll waste every last breath I have if it keeps this company in family hands. You’ll carry me out in a box before I let Vinbrew get their hands on it!”
Keith’s tirade was interrupted by Mark Letwin entering the office.
“What on earth is going on? I thought the roof was coming down.”
“Nothing,” Keith snapped. “Just stopping the CEO from giving away the family jewels.”
“Keith, let’s wait for the Board meeting,” Mark said calmly. “My job today is to bring Simon the July accounts for review.”
Keith scoffed. “You two are the same. Trying to sneak this through the back door. I’m standing right here and I’m not moving.”
He stormed out, almost knocking over a bronze statue.
“He’s in rare form today,” Mark said.
“He’s stubborn,” Simon replied, “but I can’t shake the feeling there’s more to this than Vinbrew.”
Mark nodded. “Or he’s just getting more difficult with age.”
Still, both brothers were left wondering the same thing.
Why was Keith so determined to stop the sale?
Was there something about Steele’s Ales that no one else knew?