bhp goodman and other dangers!!

I repeat my earlier warning about the Goodman Fielder acquisition (hostile) by Burns Philp and the 'can of worm's it will open.

The $100 million hidden tax liability is a mere red herring or decoy to more entrenched problems with this giant which has gone unnoticed by a wall of ignorant analysts, many of whom had a pecuniary interest in being ignorant and yes the dammned knot brain of the regulator as well.

The battle will hot up and become bitter except for the fact that Burns Philp must ensure it does not become too bold by this new 'revalation' (something they knew well before) in case the Bulls at Goodman, desperate to wage a rear guard action become hostile and unethical as well.

There are skeletons in both camps enought to fit a war cemetary in Bosnia. The challenge now is for the regulator to prove he is more than a political favour in a public seat.

On the BHP front.

The board is hopelessley split over the departure of Gilbertson. They were before he left which is one of the key reasons he went. Once more, the old guard who believe their accounting practices and business acumen of the old club days will carry them and the company in a brave new world will be carried out in due course.

I would sell BHP short as there is bound to be more revelations about their investments, the price paid to merge and smoe very foolhardy and costly divestitures.

Infighting will surface and if it does not, the share price will reflect the slow implosion of this once great over capitalised giant.

Cheers