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The Acorn Saga - Britam vs Cytonn
Rank: Chief Joined: 1/3/2007 Posts: 18,055 Location: Nairobi
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What happened? Was Edwin Dande to be the Heir-apparent but was sidelined? http://www.businessdaily.../-/130ul90/-/index.html
And Acorn [Britam owns 25%] is planning to give Board seats to Cytonn while Britam bought 25% of the firm? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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Same problem with former CEO Sehemu ndio nyumba
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Rank: Elder Joined: 3/19/2010 Posts: 3,503 Location: Uganda
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is what dande did ethical? stealing employee and clients from your employer acorn sounds like a rebellious son to Britam. britam can still make money if they had signed a contract with acorn. lesson: employees are the most important asset in any organization. punda amecheka
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Rank: Elder Joined: 8/16/2011 Posts: 2,260
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 The effects on Britam is less as there is still no business and that Britam owns 25% of Acorn. What I see is Dande will with time make money by selling his Cytonn to Britam which is a well established firm. Cytonn will be using Merali "theory of approach" to create money using his tie and mobile. Cytonn may even seek offices in Britam. The Britam share may retreat to 30Kshs but pick by December as it captures other tender overshoots.
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Rank: Veteran Joined: 9/5/2007 Posts: 627
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This was always going to happen. Ed had built quite a portfolio of clients who trusted him immensely. He had always created a very good rapport with all his staff members. When a client is brave to move a Kshs 40B project to you, then you know you will be successfully.
When the old guard decided to put a leash on his plans, he was always going to bolt. He wanted to BAAM to be the first fund manager deploy an online portal to allow the 'online generation' (including diaspora) to invest, but was frustrated in this effort.
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Rank: Elder Joined: 10/13/2009 Posts: 1,950 Location: in kenya
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Sasha wrote:This was always going to happen. Ed had built quite a portfolio of clients who trusted him immensely. He had always created a very good rapport with all his staff members. When a client is brave to move a Kshs 40B project to you, then you know you will be successfully.
When the old guard decided to put a leash on his plans, he was always going to bolt. He wanted to BAAM to be the first fund manager deploy an online portal to allow the 'online generation' (including diaspora) to invest, but was frustrated in this effort. This Ed guy is someone to watch out for...it is not easy to convince 4 guys to follow you out and form your own outfit. In my view I think Britam has been played by Acorn...and most probably cytonn is just a front. '......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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selah wrote:Sasha wrote:This was always going to happen. Ed had built quite a portfolio of clients who trusted him immensely. He had always created a very good rapport with all his staff members. When a client is brave to move a Kshs 40B project to you, then you know you will be successfully.
When the old guard decided to put a leash on his plans, he was always going to bolt. He wanted to BAAM to be the first fund manager deploy an online portal to allow the 'online generation' (including diaspora) to invest, but was frustrated in this effort. This Ed guy is someone to watch out for...it is not easy to convince 4 guys to follow you out and form your own outfit. In my view I think Britam has been played by Acorn.. .and most probably cytonn is just a front. Nail on the head. Pesa Nane plans to be shilingi when he grows up.
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Rank: Member Joined: 1/15/2010 Posts: 625
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There's something unethical and quite disturbing about this saga. An employee is not allowed to use company resources for self benefit. In the United States this would definitely not go down. Employees have atleast a 1 year non compete clause with their company. They are also barred from recruiting other employees from the same company to their new outfit for this same reason.
Britam can easily claim that ED and co stole company intellectual property and resources.
I'll be surprised if BRITAM doesn't sue.
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Rank: Veteran Joined: 9/5/2007 Posts: 627
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@mv_ufanisi: While it is unethical, it happens everyday in all industries and is especially prevalent in financial services, professional services and ICT. Note that Ed did not poach anyone. Liz, Shiv and Patricia all quit voluntarily.
BAAM would be ill advised to take this to court as no court can compel Acorn to retain them as transaction advisors. They would also have to prove that Cytonn somehow convinced Acorn to move their business. Remember they are still owners at Acorn and they will have been notified (I presume) of this change.
As selah says, Cytonn could very well be a front for BAAM in some boardroom musical chairs. However from the grapevine, Ed's departure (as well as the other 3) from BAAM was not amicable.
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Rank: Elder Joined: 6/17/2008 Posts: 23,365 Location: Nairobi
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mv_ufanisi wrote:There's something unethical and quite disturbing about this saga. An employee is not allowed to use company resources for self benefit. In the United States this would definitely not go down. Employees have atleast a 1 year non compete clause with their company. They are also barred from recruiting other employees from the same company to their new outfit for this same reason.
Britam can easily claim that ED and co stole company intellectual property and resources.
I'll be surprised if BRITAM doesn't sue. Hakuna business ethics Kenya, there is no way you will continue counting billions over people's sweat as they watch! Compensate your employees well or prepare for such moments! ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Rank: Member Joined: 2/1/2010 Posts: 272 Location: Nairobi
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selah wrote:Sasha wrote:This was always going to happen. Ed had built quite a portfolio of clients who trusted him immensely. He had always created a very good rapport with all his staff members. When a client is brave to move a Kshs 40B project to you, then you know you will be successfully.
When the old guard decided to put a leash on his plans, he was always going to bolt. He wanted to BAAM to be the first fund manager deploy an online portal to allow the 'online generation' (including diaspora) to invest, but was frustrated in this effort. This Ed guy is someone to watch out for...it is not easy to convince 4 guys to follow you out and form your own outfit. In my view I think Britam has been played by Acorn...and most probably cytonn is just a front. You're probably right on Britam being played by Acorn, and in that regard the Ed who we should be watching out for is not Dande but Kirathe. This move has his fingerprints all over it. The harder you work, the luckier you get
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Rank: Member Joined: 1/15/2010 Posts: 625
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McReggae wrote:mv_ufanisi wrote:There's something unethical and quite disturbing about this saga. An employee is not allowed to use company resources for self benefit. In the United States this would definitely not go down. Employees have atleast a 1 year non compete clause with their company. They are also barred from recruiting other employees from the same company to their new outfit for this same reason.
Britam can easily claim that ED and co stole company intellectual property and resources.
I'll be surprised if BRITAM doesn't sue. Hakuna business ethics Kenya, there is no way you will continue counting billions over people's sweat as they watch! Compensate your employees well or prepare for such moments! I think this is a case of unethical behavior by employees. Didn't BRITAM have a clear company policy on a non-compete as well as intellectual property? Shareholders are getting screwed as employees utilize company resources for self gain. This deal with Acorn was done while said employees were acting as BRITAM agents and using BRITAM resources. For them to turn around and turn it over to themselves is definitely unethical. The CMA should launch an investigation as BRITAM shareholder interests have been compromised as well.
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Rank: Elder Joined: 6/17/2008 Posts: 23,365 Location: Nairobi
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mv_ufanisi wrote:McReggae wrote:mv_ufanisi wrote:There's something unethical and quite disturbing about this saga. An employee is not allowed to use company resources for self benefit. In the United States this would definitely not go down. Employees have atleast a 1 year non compete clause with their company. They are also barred from recruiting other employees from the same company to their new outfit for this same reason.
Britam can easily claim that ED and co stole company intellectual property and resources.
I'll be surprised if BRITAM doesn't sue. Hakuna business ethics Kenya, there is no way you will continue counting billions over people's sweat as they watch! Compensate your employees well or prepare for such moments! I think this is a case of unethical behavior by employees or perhaps lack of a clear company policy on a non-compete and the company not protecting its intellectual property. Shareholders get screwed as employees utilize company resources for self gain. This deal with Acorn was done while said employees were acting as BRITAM agents. For them to turn around and turn it over to themselves is definitely unethical. The CMA should launch an investigation to ensure that BRITAM shareholder interests have not been compromised. The deal between Acorn and Britam must have had exit clauses in them, furthermore Britam owns 25% of Acorn, not a small stake if you ask me, it could even top Britam honchos screwing the share holders!!! ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Rank: Elder Joined: 6/23/2009 Posts: 13,475 Location: nairobi
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as i have mentioned severally and gone on to reveal a complete list.. there are only twenty fully ethical firms at the NSE
HF 30,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 2/26/2012 Posts: 15,979
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Mr Market punished Britam to the max Thursday. Wacha tuone kesho "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: New-farer Joined: 3/6/2014 Posts: 21
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It is unethical and stinks to high heavens. The former employees should watch their backs. Same or worse will happen to them. It will be a miracle if they stay together as their uniting factor is a selfish,unethical move.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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This britam story doesn't make sense. I refuse to buy what is reported by the media. How could the britam board not be aware of this move? Shareholders need to ask the board tough questions. If I was a big fund invested in britam this would be the obvious thing to do. Demand concrete explanation. Was the Acorn deal used as a pump and dump event? Is another CMC like enterprise corruption event unfolding as board members start mudslinging...? Will CMA be late to the party? Definitely. They can't even spot Korch vapour volume rally to heaven... Watching this one keenly for it has other party members vested in it i.e. eqty and hfck. Something stinks at NSE. Hope it's not the entire market... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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newfarer wrote:is what dande did ethical?
stealing employee and clients from your employer
acorn sounds like a rebellious son to Britam.
britam can still make money if they had signed a contract with acorn.
lesson:
employees are the most important asset in any organization. Dande did not steal employees, they moved out together to form Cytonn. It's very ethical. I think this is a culture that Kenyans should start to embrace. Employment is the part of the journey where you go to gain experience and capital then move.
BBI will solve it :)
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Rank: User Joined: 8/15/2013 Posts: 13,236 Location: Vacuum
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There is no ethics in business;its only found in employment.If there was ethics in business all businesses will be making losses and probably shut down too If Obiero did it, Who Am I?
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Rank: Member Joined: 1/15/2010 Posts: 625
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2012 wrote:newfarer wrote:is what dande did ethical?
stealing employee and clients from your employer
acorn sounds like a rebellious son to Britam.
britam can still make money if they had signed a contract with acorn.
lesson:
employees are the most important asset in any organization. Dande did not steal employees, they moved out together to form Cytonn. It's very ethical. I think this is a culture that Kenyans should start to embrace. Employment is the part of the journey where you go to gain experience and capital then move. The only reason why this happened is because of poor regulatory oversight in Kenya (inefficient, lazy and corrupt courts and CMA inaction). Kenyans have got into the habit of justifying the unjustifiable. It's totally unethical and illegal for an employee to take over a company's customer list let alone a project that the company had paid that employee to work on and allocated them with resources such as an office, their brand name etc to engage with the client less than a few weeks later. ED and crew may have gained in the short term but this could come to bite them in the behind. Would any sane company ever hire such people?
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