Forum Archive Index - March 2000

["Oliver Shapleski" <oliver.shapleski@vuw.ac.nz>]

Here's a wee rumour I'm starting.  Maybe I'm being cynical BUT:

Qantas shares are WELL below their RRP (according to CSFB/Merrills, should
be around $6.50, but instead is at $3.60 (?).  Singaporeans have a large
stake in BRY, and are sitting on a big loser.  There's close connections
between the BRY shareholders and SIA.  BRY are going nowhere, and AIRVB is
yet another black mark on its rather unexciting portfolio.
Here we have three losers with lots of close ties.  What do they do?
They pretend they're going to start some deals.  They start a bidding war
among themselves that:
(1) Should theoretically boost the share value of all three - a win-win-win
scenario.
(2) Discourages Virgin from investigating our wee market more closely (and
see what a price-fixing duopoly there is)
(3) Has no intention of resulting in any transfer of ownership.

The NZSE should be watching their behaviour a little more closely I feel.


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