Forum Archive Index - August 2002

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

Gerald main dispute was over logs going to fletcher mills instead of going 
to China. governance controls only lasted two years. nothing to stop china 
stopping buying logs in mean time and FFS collapsing Throwing all agreements 
out window And then a takeover offer at about 1 cent. Great business deal 
for Citic pity poor shareholder. You should thank god for some shareholders 
with brains.
Malcolm

>From: "{name removed}" <{email removed}>
>Reply-To: sharechat@sharechat.co.nz
>To: <sharechat@sharechat.co.nz>
>Subject: Re: Re: [sharechat] CITIC and Forests
>Date: Thu, 15 Aug 2002 22:03:49 +1200
>
>Great. Five-year-old information, different industry. Since then, we've had
>quite a bit of experience of CITIC, in relation to the CNIFP - which must
>surely be more relevant. I'd be keen to know more about what happened 
>there,
>apart from the fact that there were disputes between Fletchers and CITIC
>over the management of the forests (I think it may have been over timing of
>cutting).
>
>Mr Bourke describes CITIC as being "clear" about their intentions. Does he
>think that they have now become obscure, and that their claimed intention 
>to
>leave management to the company was fake? Mr Bourke appears unaware of the
>Governance agreement which would most likely have prevented CITIC taking
>control in the manner he implies.
>
>Of course, now CITIC is talking about buying the forests outright, and
>what's to stop them? They no longer have the option of sharing the risk 
>(and
>the opportunity) with other Fletchers shareholders. If they do buy the
>forests, NZers will lose their leverage over what happens to the trees -
>thanks to 5 percent of Fletchers shareholders (over 60 percent of small
>shareholders supported the deal, and 70% of shareholders overall). The 
>banks
>will be paid off, but probably not Fletchers (in respect of their
>debentures). Thanks, Shareholders Association, for your misleading and
>irrelevant talk of a 430% increase in debt. Could Fletchers have handled a
>50:50 ratio of debt to net tangible assets? Sure they could, like many 
>other
>companies.
>
>- Bitter minor shareholder of FFS.
>
>
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