Forum Archive Index - May 2000

[chas innes <crjinnes@yahoo.co.nz>]

I am not surprised there was a massive sellout of FFS
yesterday (started by overseas investors) which I
suspect will continue with greater force today as the
news of Paul Fowler's resignation as CEO of FFS
continue to be absorbed. After all, who would resign
if a sale was imminent because you would want to miss
out on an extremely lucrative 'golden parachute'which
is inevitably part of any such deal for a departing
CEO who has to attend to tying up the loose ends? 
Being more savvy to boardroom dealings, overseas
investors have (correctly, in my opinion)reacted
unfavourably to Paul Fowler's resignation as it does
appear to indicate trouble within Fletcher ranks as to
future options for FFS given the fact that the company
is in debt to the tune of $700 million, there is
ongoing very costly court action with Citic (with not
much hope at this stage of being resolved), and the
fact that the FFS share price is trading well above
its 'true value' (sentiments of many brokerage firms)
of 70c rather than its current price which has been
the result of market speculation and unrealistic
expectations after the sale of FLP. Certainly lots of
food for thought for FFS investors I'd imagine.

Chas Innes

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