Forum Archive Index - October 2000

["charlie brown" <gordy_gecko@hotmail.com>]

It was my understanding that the FFS/Citic saga was meant to have gone to 
Court on 19 September.  If so, a decision (albeit one which could have been 
appealled) should have been made (will be made) on the state of the parties 
dispute.

If this is not the case then why did FLC not make this known to its 
shareholders?  After all, it did come out and make comments in relation to 
the progress of resolving the dispute.

It was my understanding from correspondence that Citic were not the 
preferred buyer of FFS because of the above, and that FFS were only 
interested in having them paid out by another buyer to resolve headaches to 
all involved.

Otherwise IMHO this is a case of hard bargaining on behalf of Citic in order 
to pay the lowest possible price for FFS.  After all, ask them what their 
holding in FFS now worth.

If FFS doesn't go in an outright sale - say hello to at least 2 FLC 
companies remaining on the NZSE.

Charles


>From: Derek <dkw@paradise.net.nz>
>Reply-To: sharechat@sharechat.co.nz
>To: sharechat@sharechat.co.nz
>Subject: Re: [sharechat] FFS
>Date: Fri, 06 Oct 2000 10:17:21 +1300
>
>Thanks for the post GPT,
>
>The last 2 days with FFS give yet another example of how small shareholders
>can get hit by not having the inside knowledge of others  - a good argument
>for for small shareholders sticking to non-speculative investing I guess &
>maybe moving offshore (Does anyone know if overseas sharemarkets any better
>in this regard?).
>
>Also a brick-bat to Fletchers for keeping everyone in the dark.
>
>Cheers,
>Derek
>
>
>
>
>
>At 10:02 AM 06/10/00 +1300, you wrote:
> >    my question posed yesterday is now apparent  from the following 
>article
> >in the Herald.  A placement would be the easier to arrange  and must be
> >attractive to a US operator given the exchange rate. This would of  
>course
> >dilute the shareholding with NTA reducing from its current $1.69 to say
> >$1.25 or thereabouts. Still makes FFS an attractive proposition at 
>today's
> >prices. Look out for a rocky ride for a few days as the traders get out 
>at
> >any  cost. GPT   Fletcher Forest price drops as talks fail
> >
> >06.10.2000 - By GEOFF SENESCALL  Fletcher Forests' share price was felled
> >yesterday amid speculation that the  debt-laden company will undergo a
> >major recapitalisation after sale talks  foundered.  Fletcher has been in
> >negotiations with Citic, its Chinese joint venture  partner in the 
>Central
> >North Island Forestry Partnership.  But it is understood that the pair - 
>in
> >dispute over the partnership's  management contract with Fletcher Forests 
>-
> >have been unable to patch up their  differences.  Fletcher is understood 
>to
> >have decided to pull the plug on discussions which  included a sale to
> >Citic.  However, Fletcher Challenge spokeswoman Ginny Radford would not
> >comment last  night when asked if the deal was dead.  A Citic spokesman
> >said earlier that no progress had been made, and it was  moving to a 
>court
> >resolution.  Fletcher Forests' share price yesterday tumbled 6c to 72c as
> >the market  started talking about a possible rights issue. But an
> >alternative is for a  placement of shares to a cornerstone shareholder.
> >Brokers estimated Fletcher Forests would need up to $300 million to shore
> >up  its balance sheet.  Resolving issues around Fletcher Forests is the 
>key
> >to the restructuring of  the rest of the group, which includes Fletcher
> >Energy and Fletcher Building.  Meanwhile, shareholders in Australian oil
> >explorer Petroz have rejected a  proposal that would have handed control 
>of
> >the company to Fletcher Energy.  A meeting of shareholders held yesterday
> >to seek approval for a Fletcher  Energy proposal that would have seen it
> >take at least a 33.7 per cent stake in  Petroz, and underwrite a rights
> >issue, overwhelmingly voted against it.
>
>
>
>
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