Forum Archive Index - April 2000

[ril <ril99_99@yahoo.co.uk>]

What a shocker!

A pity Brian Gaynor didn't have an article on this in the press a few
weeks ago as the issue closes on Monday. You might still be able to
cancel the cheques in time.

Interesting to note that there is no sale restrain on the major
shareholders as tends to be the case in Australia.

Who knows the investing public may list it at a premium. It happened
with BDO; for a day.

Also interesting to see third tier brokerage JB Were involved. You never
seem to get CS First Boston in these sort of issues do you? Although I
must say that I am sure JB Were acts in completely good faith (for legal
purposes).

The whole deal reminds me of the BAT deal around the time of the last
crash in '87. Putting up no cash (not the case here but a similar
principle), three big names; Packer, Goldschmit (anglicised to Goldsmith
) and Rothschild made a bid for BAT (a fag company; sorry cigarette
company - the last thing I need is emails from PC's). They thought that
by merely attaching their names to the deal it would fly. Unfortunately,
it didn't.

Here, it looks very much like a few noters have been dragged in; the
Warehouse guy, Deane and the promoters Heatley and Softbank. Before the
company has done anything the boys have made a cool few mill on the
issue price. Warehouse there no doubt to make it look like a 'brick and
click' job.

Also, more unusual and really ridiculous is the granting of IN THE MONEY
options to staff before the company has done a bean. This can be a
technique of avoiding income tax if you throw enough money at a tax
lawyer but it is strange nevertheless.

The whole thing of course is unproven but in the current IT insanity
that probably will not matter.

It makes you wonder if anyone reads prospectuses any more or if they
just go with the herd.

All of the above IMHO.

Good luck with it - I hope you make some money but don't hang on too
long.

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