TEL AVIV Jan 5 A general shareholders' meeting
has approved the termination of Todd Morgan's employment as
chief executive of Strauss Coffee, parent company Strauss Group
said on Sunday.
This follows a Dutch court decision allowing Strauss Coffee
to go ahead with the replacement of Morgan, who will complete
his duties immediately, Strauss Group, Israel's second-largest
food and beverage company, said in a statement.
Tomer Harpaz, executive vice president for business
development, strategy and technologies in Strauss Group, will
serve as interim manager of Strauss Coffee. Harpaz served as a
director in the coffee company for the past 3.5 years.
In parallel, Strauss Coffee's board will begin a process to
search for the next CEO.
Last month a specialised Dutch court dismissed a suit
brought by private equity firm TPG against Strauss
Coffee, a Dutch-registered company.
TPG had asked the Dutch court to order an inquiry into the
affairs of Strauss Coffee, in which it holds a 25 percent stake,
claiming Strauss Group had abused its rights in the company. The
request came after TPG had been looking to sell the stake, for
which it paid $293 million in 2008.
In its filing with the Dutch Enterprise Chamber, which hears
corporate governance disputes, TPG had sought an injunction
against Morgan's dismissal. Morgan was TPG's board
representative to Strauss Coffee before he became CEO three and
a half years ago.