Paz controlling shareholder Zadik Bino and former Burger Ranch CEO Yossi Lubaton this morning reached a compromise settlement on their dispute over Burger Ranch. Lubaton alleged that Bino had reneged on a promise to sell him 40% of Burger Ranch.
Under the agreement submitted to the court today, Lubaton will be paid NIS 500,000, in addition to the compensation due him under his eight-year employment contract at Burger Ranch, plus a payment for three months notice before termination of his employment. It can be assumed that Bino will pay Lubaton over NIS 1 million in compensation, because two months ago, Lubaton rejected a NIS 640,000 compromise proposed by mediator Adv. Ram Caspi.
The timing of the compromise was not accidental. A hearing was scheduled this morning in the Tel Aviv District Court on Lubaton’s request for an injunction against the sale of the Burger Ranch. The court was slated to hear Bino’s cross-examination on a statement he had made regarding the deal with Lubaton. It can be assumed that Bino preferred an out-of-court settlement to being embarrassed on the witness stand.
Assessments are that although the injunction against the sale of the Burger Ranch chain was canceled today, Paz will not sell the chain. In all the negotiations in the past few weeks, Paz did not find a buyer at its NIS 27 million asking price. Candidates are also being interviewed for the post of Burger Ranch CEO in place of Lubaton, who was fired after the dispute emerged.
Four months ago, immediately after the Antitrust Authority director general refused to approve Burger Ranch’s acquisition of and merger with Burger King Israel, Bino offered to sell Burger Ranch to Lubaton. The offer included the sale of 40% of the chain to Lubaton, with an option for the remaining 60%.
Published by Globes [online] - www.globes.co.il - on December 24, 2003