going up!, page-5

TFS is involved in numerous "just in time" supply lines for a large range of customers. Textron makes almost nothing from the TFS business and figures is would like to concentrate on more lucrative opportunities (such as Intevia). How to maximise the return? Sell it all to a rival (US or Chineses) for a capital sum commensurate with a measly return on capital? Could have done already ten times over. Sell it off bit by bit? That would probably be worth less overall. Float a new entity on NASDAQ with a smart materials/design company (TZL) and maximise the capital return and then divest areas that are considered non-core (for about half the float price) realising a massive capital return and with only the desired high tech elements? I'm for the latter approach. Odds on so are they. Heard Merrill Lynch were after the gig but so were several other underwriters so there is probably substance to the rumour. Will take at least 6 months to become clearer but there are several leaks from interested parties. Have to be careful listening to these as they could be Chinese whispers but the strategy makes sense to me. You would have TZ worth about 20% of a US$1.5B float, satisfying all criteria including overall gravitas, demand and heavyweight associations. I'll keep 80% of profits in the entity if the opportunity arises for inside running in the new float. The ASX shares would be delisted in my opinion. I would if I were in charge - no point staying in Australia given the growth areas and interest. All the principals have relocated so it looks pretty obvious. The offers will be good for all our shares. I'm certainly expecting offers well in excess of $2.25 in 2006 but won't be selling even at that price given the potential over the next 2 years.