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And he is the one I had dinner with first and I am working closely
with his wife, Claudia. I had no ida but he is from one of the
wealthiest families in Colombia. Family of the Santo Domingo Group


BUSINESS <NOBR> </ NOBR> <NOBR> </ NOBR> What led to Andres Obregon to
resign abruptly in the most important position in the private sector
in Colombia?
Monday December 4, 2000
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By resigning Andres Obregon? That was the question that was heard in
business circles last weekend. In the 21 months he was in front of the
Santo Domingo Group owner's nephew had become an enormously popular
figure. Although soon became interim consolidated its prestige and
position in property in which, given his youth, he predicted many
years as the helmsman. Those who knew his grandfather, Mario Santo
Domingo, the founder of the empire, say that of all his grandchildren
Andrew is the one that resembles him in temperament and talent.

Upon assuming the presidency of Bavaria Obregon challenge could not
have been greater. Not only had to change the corporate culture of the
regime of Augusto Lopez but had to confront the serious problems
caused by the worst economic crisis of the twentieth century. We only
need to think that in 1999, while the brewer Bavaria won 337,000
pesos, the other Group companies (transport, telecommunications,
media, Internet, etc..) Lost nearly half a trillion pesos.

The legacy of Augusto Lopez Obregon received included major successes
and major problems. Valencia Lopez had changed the size of the Santo
Domingo Group through an autocratic system, now widely criticized but
much admired at the time. It generated a phenomenal growth but messy
worked like a charm until the collapse of the Colombian economy.

Lopez not only handled the business but who ran the power. This dual
role did not appeal to his successor, Andrés Obregón. This was limited
to manageability and never took their enormous power. He began by
selling the private plane of President of the Group, which was one of
the best perks associated with the post. The world of Andrew is his
work and not that of the intrigues and the Santo Domingo Group
historically has been characterized by both. The lobbying, public
relations and intimidation that drove the conglomerate in the past
disappeared. The control of Congress, control of media and activities
such as financing of political campaigns were no longer a priority.

This new style gave the group a new profile, which was widely accepted
in public opinion. The modus operandi of Obregon was close and simple
and its partners recognize that the big industrialists and even the
political class. Unfortunately for him the presidency of Bavaria is a
position of power and we must be aware of it and exercise it. Andres
Obregon combines the entrepreneurial spirit of Santo Domingo with
indifference by the power of Obregon. And this, which is a great asset
in life, is a liability to manage the Santo Domingo Group. In an
infinitely politicized and polarized environment, his temperament
appeared to have no place. That seems to explain the contradiction
between what the business class management considers a brilliant and
his untimely release this weekend.

Regardless of the reasons which have led to waive their achievements,
for a character than two years ago was a total unknown, is impressive.
In the year of the crisis not only closed Obregon business assets that
they can approach 3,000 million dollars, but managed international
partnerships to professionalize the management of a group that paid a
heavy price for being too diversified.

I fell the task of trying to institutionalize a highly personalized
group was but a multinational dimension of management own Third World
caudillo. It defined who would be the core business of the
organization: beer, telecommunications and media. Brewers sold
investments in Portugal and Spain to CELUMOVIL transformed through the
BellSouth transaction, capitalizing Colseguros managed by AGF, the
third largest insurance company in the world. In closing,
consolidating the Group into what it is its very essence, the beer
business.Through the transaction Leone was able to recover what had
been historically the best business in Colombia: a monopoly on beer.
Seizing Leone, in part or in full, it shuts off any competition for a
generation. At the end of the investment of 600 million dollars as the
Carlos Ardila did not do often.

I was missing Avianca, where work had begun. Six weeks ago Obregón
managed to close the restructuring of short-term external creditors,
buying time to find long term solutions to achieve the company
continues to prevent the sad fate of almost all airlines in Latin
America: bankruptcy.

But with such a balance, what precipitated his departure? Although
there might be several explanations is one that was fundamental power
alignments around the eventual succession of Julio Mario Santo
Domingo.Andres Obregon belongs to a branch of the family which, like
all others, have been selling their shares to their uncle. The true
owners of the Group, therefore, will be the three children of Santo
Domingo: Julio Mario Jr., Alexander and Andrew.

These, in turn, belong to two different branches: the greater is the
son of Edyala Braga, an aristocratic Brazilian, who was the first wife
of Santo Domingo. The other two are children of Beatrice Davila, a
distinguished lady from Bogota who has been married to businessman for
25 years. Until recently Mrs. Beatrice had remained in the shadow of
her husband. Now with two sons aged to take the destiny of his
fortune, has been acquiring an ever more prominent. Their only
interest is to set the stage for the arrival of his two sons,
particularly that of Alexander, the eldest, who is it that has shown
more interest and talent for business. Graduated from Harvard, is now
one of the yuppies of Violy McCausland, who has been grinding with
long and hard to round out their training.

In an intelligent and unobtrusive the lady of Santo Domingo has been
familiar with the intricacies of the Group and the time surrounding
himself with people of their confidence. At the head of this group are
his nephew, Carlos Alejandro Perez Davila, former director of Chromos,
Gonzalo Cordoba, and the husband of the niece of Santo Domingo,
Alberto Preciado. The first is a respected financier who works in New
York, also McCausland McCausland, whose inputs correspond more to the
track of the numbers and management. The other two have become the
lifeline of the Santo Domingo family to the Colombian reality since it
was delinked from the country for some time.

In recent weeks the issue was forced from the business circle
polarization of two camps within the Santo Domingo Group: one of
Andres Obregon complete outsider to the world of intrigue and
certainly naive in this area. The other, Alberto Preciado, an attorney
who has proven controversial to swim like a shark in the turbulent
waters of the Group.

A Julio Mario Santo Domingo was interested simultaneously exploit the
skills diametrically opposed to each one of them, were somehow the sum
of the overall ability of Augusto Lopez. But Andrés Obregón was not
willing to stay in the aquarium.

To fill the gap Obregon planning to name two. In Bavaria there is the
possibility of hiring a manager of international frontline experience
in the beverage industry. Valores Bavaria is looking for an
entrepreneur with a background in investment banking could continue
the process of restructuring the Group companies. What is certain is
that neither of these will be family.

These managers will have to be fitted to the outlines of two people
who have acquired a great influence on the Group: McCausland
McCausland, who by his closeness with Julio Mario Santo Domingo, his
son and nephew, has acquired a hierarchical position within the
organization field of financial analysis and figures. On the other
side is the former secretary general of the Presidency of the Republic
and respected entrepreneur Germain Montoya Velez, who by his knowledge
of the national reality has earned the confidence of Santo Domingo,
who wants to have someone of age and experience to balance the youth
of his new tables.

In any case, the transition will not be easy. There are too many
players trying to align near the new power.This ensures that there
will be friction and that some of the players lay on the battlefield.
On the other hand, does not seem suitable for a very important
conglomerate excess staff turnover which has been in the dome in the
past two years. For a group that has had a stable guiding for 40 years
so much change in so short time is a disturbing factor of uncertainty.


Jay Rouse
Strategic Campaigns International
1010 Wisconsin Avenue, NW suite 705
Washington, DC 20016