Forum Archive Index - May 2003

["Richard Hooper" <hoop@ihug.co.nz>]

 

-------Original Message-------

 

From: sharechat@sharechat.co.nz

Date: Sunday, 18 May 2003 20:28:25

To: sharechat@sharechat.co.nz

Subject: Re: [sharechat] tranzrail and westpac by macdunk

 

 Just a few facts to add

>
> Westpac got rid of 13.05 million shares in tranzrail the week before
> the price hike. Says a lot for financial advice dont you think?.
>I thought it was about 6 million but..hey who's counting


Without the benefit of foresight and given Westpac had a
shareholding, I would say that action of Westpac (Investment Funds)
was quite sensible. Tranzrail were/are facing bankruptcy within the
space of a few weeks. If that happened and the Govt were irresponsible to not intervene, the railways would have to cease operations making reliant businesses unable to move their produce, that would cause national economic chaos wouldn't it ? Westpac would have looked very red faced if
their entire investment in Tranzrail had gone down the toilet. It is
impossible for even the best managers to get it right every time, and a
rescue bid by a white knight was never certain until it happened.
Westpac obviously judged the bankruptcy of Tranzrail to be a serious
possibility, which it was.Or perhaps a form of nationalization at the 12th hour, which would perhaps have the same result for shareholders? 

Of course, none of that explains why Westpac were invested in
Tranzrail in the first place......OK that is one theory, but why did Amp Global Inv (NZ) invest about 3 million, (1.6%) notice submitted on the 8th May, and Tower Assett Management buy about 10.5 million (5%) notice submitted on the 9th of May.Did these finance managers know something that the Westpac managers didn't?  Or ...were they astute in thinking that the Govt would not allow a national transport moving company, of the likes of Air NZ, to collapse, before they intervened?

SNOOPY
Hoop


--
Message sent by Snoopy
on Pegasus Mail version 4.02
----------------------------------
"Dogs have big tongues, so you can bet they don't
bite them by accident"


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


.

____________________________________________________
  IncrediMail - Email has finally evolved - Click Here