Forum Archive Index - January 2001

["Malcolm Cameron" <malharcameron@hotmail.com>]

from malcom cameron rubicon could be a dud but also very likely to be a very 
profitable buy as a technology venture capital stock with more marketing 
skills & inovation than most others there redirection of capstone is a good 
sample


>From: Mike Hudson <MHudson@placemakers.co.nz>
>Reply-To: sharechat@sharechat.co.nz
>To: "'sharechat@sharechat.co.nz'" <sharechat@sharechat.co.nz>
>Subject: [sharechat] FEG/Rubicon
>Date: Fri, 12 Jan 2001 15:21:22 +1300
>
>I am trying to decide whether to quit FEG or to hang on till the break up.
>My gut feeling is that there is an upside to holding on as we could be in 
>an
>FFS type situation with many small shareholders getting out on the advice 
>of
>their brokers or simply because the deal is just too complicated.
>
>As of today the Shell component is worth $7.42 and the Capstone $0.95 =
>$8.37
>
>The current price of FEG is $8.36. Obviously there is uncertainty about the
>CPST price and currency movements and there is an opportunity cost factor 
>on
>the use of the funds but basically as it stands now you are getting Rubicon
>for free.
>
>So the question is, how much is Rubicon worth? FCL valued it at
>approximately $1.20 when the first separation announcement was made in
>October. I had a newsletter from a broker the other day ascribing a value 
>of
>26 cents.
>The answer is no doubt somewhere in between. But where? It is a moveable
>feast as its value will fluctuate with that of FFS.
>
>Has anyone out there got an opinion on this one?
>
>A reminder of the original announcement
>
>The new company, Rubicon * Will be established, on separation, as an active
>business with a defined strategy to commercialise emerging new technologies
>that have high-growth, high-margin potential.
>
>  * Will play an important role in the restructuring process, by supporting
>the recapitalisation of the Forests Division, and acquiring some Energy
>assets.
>* Will initially consist of:
>*      The biotechnology assets and South American forestry assets acquired
>from the Forests Division for a combined price of $80 million
>*      The Challenge! service station network of strong New Zealand small
>businesses, and the Brisbane, Timaru and New Plymouth terminals which
>support them, acquired for $20 million
>*      14% of New Zealand Refining Company shares
>*      $20 million in cash
>*      An alliance with Genesis Research and Development in relation to
>bioremediation
>*      Commitments to subscribe for a placement of $90 million of Forests
>shares and also to sub-underwrite $170 million of the Forests rights issue
>
>
>Cheers
>Mike H
>
>
>
>
>
>
>----------------------------------------------------------------------------
>http://www.sharechat.co.nz/          New Zealand's home for market 
>investors
>http://www.netbroker.co.nz/        Trade on Credit, Low Brokerage. Join 
>now.
>----------------------------------------------------------------------------
>To remove yourself from this list, please use the form at
>http://www.sharechat.co.nz/forum.shtml.

_________________________________________________________________________
Get Your Private, Free E-mail from MSN Hotmail at http://www.hotmail.com.


----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
http://www.netbroker.co.nz/        Trade on Credit, Low Brokerage. Join now.
----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.