Forum Archive Index - August 2002

["Jim Insley" <jinsley@paradise.net.nz>]

Brian Gaynor did NOT say it was a bad deal for Rubicon shareholders.

----- Original Message -----
From: "Gerald Dreaver" <gdreaver@paradise.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Thursday, August 01, 2002 11:26 PM
Subject: [sharechat] Fletcher Forests/CNIFP deal


> I'm interested in other FFS shareholders' views on this deal. Frankly, I'm
> annoyed at the attempts of Xylem and the Shareholders' Association to drag
> this deal down.
>
> I was distinctly unimpressed by the Xylem missive that arrived in my mail
> today. One of Xylem's arguments that the price being paid for the CNIFP
> assets is too high is that it "does not reflect the full strength of FFS's
> negotiating position as the natural purchaser of the CNIFP assets".
>
> I'm sure that it's true that the assets are worth more to FFS than to most
> other potential purchasers. Ownership of the assets will provide savings
in
> scale and haulage, given the proximity of the other major Fletcher forests
> and mills. This is reflected in analysts' estimates that acquisition would
> add 10 cents to the FFS share price. But if FFS is the natural purchaser,
> this means they should "naturally" prepared to pay MORE than anyone else,
> not less. This gives the Receiver a strong negotiating position, not
> Fletchers. There has been a trickle of offers in the vicinity of US$650m,
> and I see no reason why this should not continue, especially if the
> currently proposed deal falls through.
>
> It's ironic that, while saying that the deal is overly generous to
Rubicon,
> Xylem present in evidence a commentator (Brian Gaynor) who thinks it's a
bad
> deal for Rubicon shareholders. Can both of these be true? Perhaps, because
> Gaynor seems to think that shareholders should make their decisions on the
> basis of patriotic sentiment rather than rational analysis. Never mind
that
> rational analysis by all shareholders would serve the country better.
> Personally, I consider that Dryden Spring, who happens to be the guy
several
> large companies trust with directorships and who I presume has a
reasonable
> shareholding of FFS shares himself, is taking a rather more rational
> approach to this situation than Xylem.
>
> Regards,
>
> Gerald Dreaver
> Wellington
>
>
> --------------------------------------------------------------------------
--
> To remove yourself from this list, please use the form at
> http://www.sharechat.co.nz/chat/forum/
>
>
>


----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/