just drafted a lengthy response which I lost
the NA Williams and Fidelity cross examinations were the most enlightening and I suggest everyone catch up on them.
But in short, the NAW ceo explained that the number of transactions quoted in their market release was representative of the entire after sales car parts market (nationwide). So even if NAW was able to on sell gsw to all of their clients, for every single delivery, they still wouldn’t be anywhere near that figure in the market release.
the fidelity analyst admitted that he arrived at the $4/share valuation based on a crude multiple of the NAW deal being fully realised. He also admitted that his analysis was ‘woefully inadequate’ (after Mr Darke (counsel for gsw) suggested that to him).
so when you put those two together (namely dodgy figures and even dodgier analysis), you can see how they nabbed the $75m
I think it’ll be tough for asic to win this, but I have no doubt that the intention of the releases was to confuse and mislead the market. Up to judge Lee to decide if he agrees.
