Last year, Rafael Recanati, the controlling shareholder in IDB, dismissed his son Michael from the family shipping company Overseas Shipholding Group (OSG), according to speculations reported by the Bloomberg wire service. OSG is traded in New York at a market value of $630 million.
Michael Recanati, 38, joined OSG in 1978 when he was only 20 years old and was appointed a director in the company. In 1987, he was appointed vice president and he served in the position until 1995. His departure was discreet.
The company’s official notice of the departure states Michael "left to pursue private business". However, it is estimated that disputes between Michael and his father Rafael Recanati, who founded OSG in 1969, are the real reason behind the resignation.
Rafael is the largest shareholder in the company, with an 18.6% share. Despite the fact that his official title is only Chair of the Finance and Development Committee, analysts believe he makes most of the company’s important decisions.
OSG is one of the largest marine transport companies in raw materials transportation. The company has 59 cargo ships, listed on the company’s balance sheets at a value of $1.17 billion. The company also operates three luxury cruise ships through a joint venture.
According to the estimates, the field of luxury liners was also the source of the family squabble and the reason for Michael’s departure from the company. The cruise ships caused OSG losses of $12.2 million in 1995, causing the company to close the year on a loss of $8.63. It appears that Michael wanted to continue to develop the field and even invest in it, against his father’s wishes.
The Recanati family spokesperson in Israel said today Michael Recanati left the shipping company over a year ago without any differences of opinion with family members or his father.