is john law's a qualified financial adviser ?

  1. 635 Posts.
    Is John Law's a qualified financial adviser ?
    Is he a holder of a proper authority to provide MIM shareholders with investment advice ??
    He would have to be mighty careful in what he says.
    Is this relevant to MIM you ask.
    Yes it is - read on.
    Platinum Asset Management got my NO vote.
    You do what you think is right - but hell taking advice from John Law's - anything for a buck.

    MIM bid's $15m sweetener
    Richard Owen
    MIM Holdings' team of advisers stands to pocket fees and commissions approaching $15 million if shareholders approve Xstrata Plc's $4.9 billion bid for the company next week.

    But the arrangements are not disclosed in the information memorandum.

    Revelations about the fees came as Xstrata's bid yesterday received Foreign Investment Review Board approval, clearing the way for shareholders to vote on the issue next week.

    Chairman Leo Tutt last night confirmed that MIM's joint advisers Gresham Investment House and Merrill Lynch would, "like all of these people", receive additional fees in relation to the success of the scheme.

    "But I don't think I really want to go beyond what's written in the information memorandum," he said.

    When told there was nothing in the document about advisers' fees, he replied: "It's there surely," before adding: "Well, I'll take it on notice, no comment."

    But Mr Tutt went on to argue that any success fee paid to MIM's advisers for achieving an enhanced offer price was ultimately irrelevant.

    "If it goes through, the shareholders don't have to pay it so it doesn't matter, and if it's unsuccessful they (the advisers) don't get it and the shareholders haven't suffered," he said.

    Neither Gresham nor Merrill Lynch was prepared to disclose or comment on their fee structure because the matter was subject to a confidentiality agreement.

    However, The Courier-Mail has confirmed that a significant component of the fees in question remain contingent on Xstrata's success, as both firms go about promoting the merits of receiving $1.72 a share in cash by voting in favour of Xstrata's offer.

    Former Normandy Mining chief Robert Champion de Crespigny, who has offered to serve as one of a slate of directors to fill any vacuum within MIM's boardroom if the scheme is voted down, criticised the lack of disclosure on fees.

    "I would have thought every shareholder would like to have known every fee that's being paid to every adviser in a transaction – were it to be material for them to know," he said last night.

    Xstrata has hired the "golden tonsils" of Sydney, broadcaster John Laws, to promote its offer, which needs 75 per cent of shares voted and 50 per cent of shareholders who vote for the deal in order to gain court approval.

    Hedge funds control about 40 per cent of MIM's register and overwhelmingly support Xstrata's cash bid of $1.72 a share, but fear being outvoted by MIM's 69,000 small shareholders who have sufficient numbers to defeat the offer's scheme of arrangement.

    Their attention has turned to ways they can boost the "Yes" vote, including splitting their large holdings into smaller parcels and transferring them into the name of individual clients before the record date for voting next Wednesday.

    A spokesman for the Australian Securities and Investments Commission said yesterday that while the practice was considered "objectionable it was still not illegal", implying that any objections raised would be a matter for the Queensland Supreme Court to deal with at the scheme's second court hearing.

    Platinum Asset Management, which supports MIM managing director Vince Gauci's dissenting view that Xstrata's offer undervalues the company, has now received more than 9000 shareholder "No" vote proxies.

    It confirmed plans to scrutinise the register for any evidence that share splitting had skewed the vote if shareholders approve the scheme on June 6.

    MIM shares closed 2¢ higher at $1.62 on turnover of almost 50 million.

    The author owns MIM shares

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