too smart by - half time to go

Feathers fly as Peacock faces putsch
August 17, 2009

AS FORMER Liberal party pony Andrew Peacock might once have noted, this is a very serious matter.

For the last few years, Peacock has been chairman of oil and gas explorer Amadeus Energy.

But he's found himself in something of a disagreement with a major shareholder - the listed investment company CVC Ltd (not to be confused with privateers of a similar name) - which is sitting on a 5 per cent stake in his company.

Peacock's crew wants to raise $25 million via a placement to institutional and ''sophisticated'' clients of the Perth-based broker Hartleys - but not to existing shareholders.

That hasn't greatly pleased CVC's boss, Sandy Beard, who is keen to point out, ahead of a shareholder meeting to approve the transaction, that the discounted private placement would dilute existing stakeholder somewhat by increasing the number of shares on issue by, oh, a cool 50 per cent.

Beard points out that the issue of new shares at 26c is at a bit of a discount to the 93c of Hartleys' own valuation of the stock and argues that the placement ''constitutes a transfer of wealth from existing shareholders of approximately $43 million''.

And he's not stopping there. Instead, he's asked the company to hold another special meeting to roll the current board, including Peacock.

Far from letting his feathers get ruffled, Peacock's chaps issued a statement pointing out the threats of ''recent global financial instability'' and how everybody else is also raising money while noting the money is needed to ''strengthen the balance sheet''.

A political showdown to woo the hearts and minds of shareholders beckons.

Question being, can a souffle rise three times?

http://business.brisbanetimes.com.au/business/feathers-fly-as-peacock-faces-putsch-20090816-emby.html

And where will the shareholders fall? Will they once again get stiffed by towner and his mates or will they finally take back their Co?. There will be plenty backing this move.
3 years of absolute garbage is ENOUGH.