An associate general counsel of Franklin Templeton Investments, John Hornbostel also serves as corporate secretary of Franklin’s wealth management subsidiary Fiduciary Trust Company International. Previously an associate at White & Case, John Hornbostel was a member of a multinational team based in Prague, Czech Republic, overseeing transactions such as privatizations.

1. Understanding the Two Forms of
Privatization
John Hornbostel

2. Introduction
• An associate general counsel of Franklin Templeton Investments,
John Hornbostel also serves as corporate secretary of Franklin’s
wealth management subsidiary Fiduciary Trust Company
International. Previously an associate at White & Case, John
Hornbostel was a member of a multinational team based in Prague,
Czech Republic, overseeing transactions such as privatizations.
Privatization can be implemented in two distinct forms: the
privatization of government operations and the privatization of
public companies. Privatization of government operations involves
transferring ownership of assets or business operations from the
hands of the government to the private sector. It may happen as a
result of the government seeking to stop operations in certain areas
or through voter-driven initiatives. It may take place through the
sale of government-owned assets or through the removal of
legislation barring private investment in a public sector.

3. Privatization
• Ultimately, the privatization of government activities substitutes
monopolization for competition. Proponents of such privatization
efforts say that competition leads to better services and more
efficient pricing, while critics argue it reduces control of perceived
“centralized” operations and leads to inequalities and privately
owned quasi-monopolies.
Corporate privatization, for its part, involves transitioning from a
publicly traded company to a private company. It can occur through
a management buyout where a listed company’s managers
purchase all listed shares and delist the company, or through a
tender offer by an investor to shareholders to sell all the company's
stock at a predetermined price. Going private ultimately entails
removing the company’s stock from the stock exchange.