Forum Archive Index - October 2000

[oli@vodafone.net.nz]

What does this do for shareholders of FLB and FFS?  Does this give them 
increased
leverage with respect to the group restructure if Shell fail in the High Court?
(I'm assuming that's where it'll head next week - and due to the flow-on 
implications,
it could well be fast-tracked to judgment mid November (a guess).  I believe
that it does.  

It means of course that FEG shareholders won't get their $8.30 in US$ 
equivalent,
but will have to hold like all FFS and FLB.  It would appear that that reduces
FEG's bargaining power with respect to the Rubicon ownership structure.  Haven't
worked through the implications for Rubicon yet, but my gut feeling tells me
that the Rubicon structure will need tweaking.  

As an aside, FFS is selling its biotech interests to Rubicon for $80m - is that
right?  My view - and I admit it isn't a very informed one as I haven't gone
through the figures - is that FFS shareholders may be justified in saying that
this transaction prejudicially favoured FEG shareholders.  I'm curious to find
out how the price tag was decided.  

os

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