Forum Archive Index - May 2002

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

Hi winner69,
 

>
>
>The real story is that Data Advantage and Baycorp 'merged' their
>operations.
> 
>Why I say that DAD 'took over' Baycorp is the way the deal was
>structured.
> 
>DAD paid for Baycorp by issuing a lot of DAD shares to the Baycorp
>shareholders. All Baycorp assets ended up in DAD's books - including
>a huge amount of goodwill.
> 
>Called themselves Baycorp Advantage (BCA).
> 
>That in my language is a 'takeover' - whether it was prompted by
>Baycorp or Data Advantage I don't know but the combined companies
>have ended up in one entity called Baycorp Advantage.
> 
> 
> 


I think that is a fair assessment of what happened.  My impresssion 
is certainly that Baycorp drove the merger, but I would certainly 
like to hear from someone on the other side of the Tasman to see if 
Australians had a different impression.

My perception is that the reason the deal was structured this way was 
to make an easy entry into the Australian market.  It would have been 
less messy than a two stage process of taking over Data Advantage 
completely, then relocating an enlarged Baycorp in Australia.  
Whether this way of doing things was wise is another matter.  Am I 
correct in thinking that if Baycorp had taken over Data Advantage 
there would be rather less goodwill on the books of the combined 
entity than is the case now?

Your position is certainly consistant Winner69.   If you believe that 
the sprirt of Baycorp is now dead, then you are correct to disregard 
any Baycorp charts.   For the sake of investors in the new entity, 
though, I hope you are wrong.

SNOOPY





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Message posted by Harry Tennyson
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