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1.10 NEGOTIATIONS
Ministry agreed and Gerber entered 19 shortlisted companies Government ensures employment level remained same at Alima and that its suppliers would remain associated with the company. Gerber offered to train the employees, increase their salaries Gerber did not want Borek Stary Facility ( alcohol beverages) because i. It was against their motto , pure and natural ii. The environmental issues were complex and costly to resolve Government agreed on selling the facility separately at first but later realized it cant be done The agricultural land around Alima was the property of citizens, Gerber purchased the land on lease but was afraid it might be a problem later on as the land could be claimed back Gerber was mostly worried about taxation as in affected their return rate
1.11 CONCLUSIONS
Ministry of privatization changed while negotiations were still in process Gerber was accused of exploiting Polands condition and purchasing Alima to shut it down and sell US products instead The political distress put Gerber in a dilemma whether to proceed with the deal Change in political system would result in the following Problems: 1. Renegotiations would take place 2. Gerber might lose its tax credit and other privileges that previous government agreed upon 3. High public pressure and hence high risk