what a difference management

As I continue to digest this amazing sellout by HDR board I can't help but reflect on what a difference strong management makes.

I was (and still am) a shareholder in Woodside when Shell attempted to buy it out. The price offered at the time (~$14.50 if I recall) certainly appeared reasonable at the time. John Akhurst (MD) rejected this knowing the company could be a far better entity, just given a bit of time. He fought tooth and nail and won! Those same WPL shares are now worth nearly triple!

It is distressing to think that a guy who was appointed but a couple of years ago to run HDR, but who has failed to deliver on almost every objective, has now simply manipulated a sale of the company (for reasons we are yet to see).

Potter's track record in performance does not allow me to believe he has enough knowledge or ability to make a proper and informed decision such as this. The fact there is a Board supporting him does not ease my concern. The reality is if the MD says stay and fight, the Board will almost certainly step into the ring with him.

My gut feeling is that Potter was simply not up to the mark. He was feeling the heat with the Ching problems and the drop in share price and has decided that a sellout is a good way for him to get out of the kitchen at the same time holding his so called reputation in tact. I believe Simon Potter is probably a good 'assistant coach" but unfortunately just doesn't quite have what it takes to step up to the "head coach" position. The disaster here is he has literally taken a company with such expansive blue sky potential down / out with him.

Make no mistake, Tullow have not been prepared to pay a 60% premium for no reason. They know exactly what they are buying and the $2.02 price is an attempt to make shareholders believe they are being generous (with the 60% premium), at the same time trying to ensure they are not caught out literally ripping the HDR shareholders off (if all the info was known).
One has to ask, why have TLW and HDR put a block on information to other potential bidders? Simple... they do not want that information to be known outside, as it would show the true potential and possible future value of the company!

This smacks of a capitulation by a manager who is/was quite simply out of his depth!


PS: I bet Owen Hegarty will fight for and produce a better result for OXR (in fact he's already miles in front)


dodds