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From: | "tennyson@caverock.net.nz" <tennyson@caverock.net.nz> |
Date: | Sat, 15 Sep 2001 18:04:41 +0000 |
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 --------------------------------- Message sent by Snoopy e-mail tennyson@caverock.net.nz on Pegasus Mail version 2.55 ---------------------------------- "Dogs have big tongues, so you can bet they don't bite them by accident" ---------------------------------------------------------------------------- http://www.sharechat.co.nz/ New Zealand's home for market investors ---------------------------------------------------------------------------- To remove yourself from this list, please use the form at http://www.sharechat.co.nz/forum.shtml.
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