Doosan Bobcat Employees Involved In Major Breach of Duty + Doosan Group Pushes Ahead With Merger

• On 26 July, it was reported in the local media that there has been a major breach of duty by nearly 40 current/former employees at Doosan Bobcat.

• The fact that this material breach of duty was not revealed prior to the merger announcement adds to the argument that this merger/split/delisting should be either cancelled or redone.

• We remain negative on all major companies involved in this deal including Doosan Bobcat and Doosan Robotics. The breach of duty at Doosan Bobcat adds to the fire.

On 26 July, it was reported in the local media that there has been a major breach of duty by nearly 40 current/former employees at Doosan Bobcat. The exact amount of money involved in this breach of duty has not been revealed but it is estimated that it could in the tens of million US$ dollars.

The fact that this material breach of duty was not revealed prior to the merger announcement adds to the argument that this merger/split/delisting involving Doosan Bobcat, Doosan Enerbility, and Doosan Robotics should be either cancelled or redone at different merger ratios.

The breach of duty involved the following: First, in the purchasing department, there were many cases of purchasing items at higher cost than the actual market cost. Second, there have been cases where the construction costs were not recorded properly in the accounting books. Third, one of the former employees helped to give particular suppliers excessive orders.

Photo by rawkkim on Unsplash