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minorities say no !

  1. singas

    2,961 Posts.

    Christine Lacy counts the votes and comes up with not enough.

    Coming up to two years in PBL's top job, Peter Yates might be getting a bit sweaty.

    Nothing to do with Nine Network chief John Alexander, rather Yates' latest baby: the $95 million mop-up of the minority interests in the suddenly profitable ecorp.

    The punters, who control a collective 24 per cent of the dotcom survivor, aren't exactly taking to the Packers' 55c-a-share offer like potatoes to gravy and Park Street is worried it may not get the required 75 per cent of votes cast in favour of the privatisation.

    Former ecorp boss Daniel Petre has already said he'd take the cash for his 8 per cent stake but early indications of voting suggests Yates will have to convince a few more shareholders the deal's a cracker.

    But fresh in the memory of the 30,000 or so remaining shareholders - one third of whom have less than a marketable parcel - is the $1.20 a share they paid when the business was floated in mid-1999.

    Hard to forget, too, ecorp's peak of $8.60 three years ago.

    The acceptances of the Yates-constructed deal haven't exactly been pouring in ahead of the March 9 deadline and this week he'll employ the services of elite Sydney corporate advisory firm Georgeson Shareholder Communications to rally investors.

    That's the same mob Solly Lew used in his failed bid to win re-election to the Coles Myer board.

    For those investors seeking guidance, ecorp boss and "independent" arbiter Alison Deans - who is to be sucked up the Packer chute once her company goes private - has already said she thinks it's all a bonzer idea.

    And why wouldn't she. If the deal gets up, PBL is going to buy her 4.5 million ecorp options, which have an exercise price of 51c, not for the net gain of $180,000 as ordinary arithmetic suggests but, after a bit of Black-Scholes mumbo-jumbo, $945,000. And the options were well out of the money compared with ecorp's average share price of 37c in the six months ahead of the bid.


    Sounds like the media is waking up to the crappyness( technical term) of the Ecorp offer.

    I have had a responce from ASIC and it confirms that as ord holders the companies and governments consider us a joke.

    in their replay " ASIC has a wide jurisdiction, your complaint has been assesed and it appears that the conduct reported does not contrivene a law regulated by ASIC. Accordingly, ASIC is unable to take any further action in this matter."

    So, what is the point of bringing clearly flawed reports which must be submitted to asic for review to their attention if the are unable to vet the contents for veracity ?

    The ASIC will traget softies like the odd financial adviser but when it comes to the boards of this counrty its off to the too hard basket.

    HIH, Onetel and others all went bust on their watch. Perhaps, Ord holders are better putting the money under he bed - as Aussie business puts the yanks to shame.


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