Forum Archive Index - September 2001

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Malcolm,
>
> Due diligence on
> accounts does not show Australians sloppy systems and slap happy
> work Ethics production not quality is the thing. 
>
>
Australian sloppy systems are not to blame for this.
Take a look at the link below

http://www.smh.com.au/news/0109/15/review/review1.html

and you will find this quote from Jim Farmer.

------------------------

Air New Zealand's acting chairman, Jim Farmer, had grim
 recollections this week of the negotiations with News, which took 
place after Singapore Airlines had lodged a bid. Farmer (a respected 
QC and "competition lawyer in my real life") said the examination of 
Ansett's books before the deal had been so "extremey limited" it had 
been practically worthless.

"Obviously the due diligence process is crucial for establishing 
the financial health of a company but as News Corp had competing 
bidders they were in a position to lay down the rules," Farmer said.

"And while we pushed as hard as we could, the fact was with Singapore 
Airlines ready to write out a cheque, no questions asked, it was a 
seller's market."

-------------------------

There is an old(?) saying in sharemarket investing.  Never fall in 
love with your investment.   It was clear that Jim Farmer and the 
board of the day did just that.   

These people were paid $90,000 per year by shareholders for part time 
use of their business expertise (sic).   Yet Air NZ were a part owner 
of the Ansett business since October 1996.   Air NZ directors had 
*three years* to become intimately familiar with the Ansett business. 
News Corp put the hard word on the board to make up their mind.  
'Buy and Hope' is not a substitute for not doing your homework.   Jim 
Farmer must go!  SNOOPY


 
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