"In 1999, Richard Laubscher, the former Nedcor chief executive, through discussions with Michael Katz
, became aware that ENF
was considering merging with an international legal practice.
"Nedcor/NIB then entered into discussions with ENF
to purchase its corporate law advisory business.The chairman of ENF, Professor Michael Katz, although a non-executive director of Nedcor at the time, was not involved in his capacity as a director of Nedcor.
Because of Michael Katz's
position, great care was taken not to involve him on the Nedcor
side when the acquisition of ENF
was considered.Michael Katz
was involved only as one of the ENF representatives," the statement said.
It continued: "Following initial negotiations between the Nedcor
executives and ENF
, the proposed transaction to acquire the corporate advisory business of ENF
was presented to the Nedcor
chairman's committee on 18 October 1999.Six non-executive directors and six of the executive committee members were present and discussed the issue.It was agreed by the committee that the executive management could proceed with the negotiations. Michael Katz, who was a non-executive director representative on the committee, recused himself from these discussions.
recused himself from the decision.