citi today........, page-22

I Said it on the 8th of March and I'll say it again Citigroup and Macqaurie bank....LOL, clowns + agendas!

Driving FortescueFont Size: Decrease Increase Print Page: Print Kevin Andrusiak and Elizabeth Gosch | March 12, 2008
FORTESCUE Metals' chief supporter, Charlie Aitken, has lifted his target price for shares in the company and pointed the finger at Macquarie Bank for trying to drag down the stock.

Mr Aitken, who heads Southern Cross Equities' institutional trading desk, told clients that Fortescue shares could be worth up to $15 each within 12 months as the company ramps up output from its Chichester Ranges project in the Pilbara.

Southern Cross, along with JPMorgan, helped place $500 million worth of Fortescue shares in July last year at $36 each, or $3.60 after the 10-for-1 share split was achieved in January.

Mr Aitken famously said last year that Fortescue shares could be worth $100 (or post-split $10) each.

In a note to clients titled Andrew vs Goliath - in reference to Fortescue founder Andrew "Twiggy" Forrest - Mr Aitken said the first stage of the Chichester project to produce 55 million tonnes a year of iron ore was the hard part.

Additional capacity would be easy to deliver, he added.

"I did laugh the other day when I saw the headline 'Citigroup initiates coverage on Fortescue with a sell'," Mr Aitken said.

"Firstly, it is interesting to initiate a sell after you never recommended buying the stock and have missed the first $23 billion in market capitalisation for your clients. Secondly, isn't it ironic that a somewhat impaired global financial recommends selling one of the best performing resources stocks in the world?

"I also hear Macquarie Bank have been running a sell/short campaign on Fortescue. I stand by my comments of a few months ago that the only rusty nails are in the coffins of those who have tried to short Fortescue."

Macquarie Bank, which has a 12-month share price target of $4.10 for Fortescue scrip, declined to comment about the allegation.

Citi, which helped Fortescue raise the bulk of its $2 billion to finance construction of the Chichester project, has a $7 target on Fortescue shares.

Meanwhile, the corporate watchdog yesterday stepped up its case against Mr Forrest over allegations that he misled the share market in 2005.

The Australian Securities and Investments Commission filed more than 100 pages of evidence in the Federal Court against Fortescue and Mr Forrest, who recently acquired the mantle as Australia's richest man.

ASIC alleges that Mr Forrest and FMG failed to comply with continuous disclosure obligations when it announced construction and supply contracts signed with three Chinese companies - China Railway Engineering Corporation, China Harbour Engineering Corporation and China Metallurgical Construction Company - in late 2004.

Mr Forrest faces a fine of up to $600,000 and could be banned as a director.

FMG could be fined as much as $3 million.

Justice John Gilmore adjourned the case for a further directions hearing on March 28.

Fortescue shares slid 8 per cent, or 64c, to $7.39 yesterday.