In fairness to the Spanish (ACS), the Leighton Al-Habtoor (BICC) fiasco is a legacy issue left over from the Wal King/ Dave Stewart era - unfortunately, they couldn't kick the can down the road any longer.
Gorgon is another shambles with Hamish Tyrwhitt's paw prints all over it, he of the $12M severance package when ACS took the controlling share in Hochtief. CIMIC might get some dosh, but they're negotiating with Saipem, not renowned for being charitable!
With regards Mchael Wright (formerly CEO), he dodged the sword and has been appointed 'Executive Chairman Mining and Minerals.' In other words, he becomes part of the package when CIMIC spins off Thiess. JP Morgan have allegedly been courting an American PE group who actualy want to go mining (unlike the Spanish - mining requires too much cash up front, despite the long tail of secure income). The Thiess guys are desperate to be sold.......
Ever since ACS took over Hochtief, Leighton holdings/ CIMIC, they've ripped cash out of the business (allegedly) to prop up losses in Europe and elsewhere (eg Dragados). It's the standard Southern European operating model - see Selini Impregilio - so long as the cash is coming in faster than it is going out, all is well! Hence the factoring and late payment of sub-contractors etc. Who said Ponzi....?
Interesting to note though, that the win at all costs atitude has been tempered somewhat as the industry as a whole has baulked at the risks associated with infrastructure megaprojects - CIMIC has walked away from Snowy 2.0 and NEL for example, Lend Lease have jettisoned their civil business etc. Only Selini will go where others fear to tread.....
CIM Price at posting:
$28.34 Sentiment: Hold Disclosure: Not Held
