Forum Archive Index - October 2000

["Brian Jones" <ibbij@hotmail.com>]

Deane puts a value of NZ$11.22 on the FLE sale.
This is based on CPST @US$48.That price dropped 14% 0vernight.-Take off 24 
cents -leaves $10.98.
Leave us, the NZ shareholders with the currency risk of the cash 
component.If the NZ dollar strengthens a little and the U.S. dollar weakens, 
I don't think it's out of the question to see the NZ dollar at 44 cents by 
settlement time. ie a 10% reduction in the cash paid. -Take off 83 cents- 
leaves $10.15.
Rubicon valued at $1.20.Deane's value. A company with a loss making 
component from the word go. (Challenge!)and exposure to the FFS share price 
and its underwriting risk. Halve Deane's value to give a market value (ie 
what someone will take them off your hands for) -Take off 60 cents- leaves 
$9.55.
Pay-out delay on the current price of $9.10 say 2%.-Take off 18 cents - 
leaves $9.37.
Allow a discount for the on-going exposure to CPST and its currency risk and 
for the on-going associated hassles of the whole process.-Take off what you 
think that is worth and you are left with a true value for this sale of 
around $9.20 per share.

The FFS 2 for 1 cash issue @ 25 cents leaves me speechless.

To quote Rod Deane, one of NZs emminent bussiness leaders,"The board and 
management are pleased and satisfied about the outcomes announced today " .

Well, all I can say is, they surely can't be shareholders.

Regards.
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