Oh what a tangled web we weave,
When first we practice to deceive.
On the first announcement of this takeover bid, the story was that RG was doing this to relieve shareholders of the worry of retaining shares in a company with such poor prospects. RG, in a demonstration of compassion, generosity and altruism would take on this onerous burden himself. The problem with this position was that the offer was no different to, or usually just below, what any shareholder could obtain on the open market. In other words, rather than face a potential loss, shareholders were being asked to accept an immediate loss. As time progressed, this reasoning was viewed with increasing scepticism by shareholders and finally abandoned by RG's takeover think tank.
The next ploy was to involve shock tactics. For example, I remember receiving one message that indicated Pact had been delisted from disallowed. The next day I was surprised to find the company still being listed, so only on closer inspection did I find that Pact was no longer listed on the main board. There were other instances of this type of information in which it was all too easy to misinterpret the message.
The latest hand grenade to land on my desk has moved into totally new territory. The message is both confrontational and threatening. It's always a good idea, before reading one of their messages to sit down, arm yourself with your favoured support, (whisky, joint, cup of tea), and then, having read, do nothing at all.
# Pact will not be subject to the disclosure, reporting and corporate governance requirements of the ASX Listing Rules#
This I understand to mean that vital company information will be withheld and positive data concealed. No more 'corporate governance requirements', I suppose must mean that they will not comply with any regulations they can get away with.
# Kin Group's other intentions...#
In summary they make 5 points which indicate an intention that to all intents and purposes Pact Group will be taken over by the Kin Group for all its management, financial and operational decisions with the objective of punishing remaining shareholders for the temerity of holding onto their shares. The total control by Kin Group would I suppose mean that they will try to lumber Pact with costs, transfer capital and profits, raise capital to dilute shareholder's interests, and in this way disadvantage shareholders in every way possible. The Kin Group is nothing more than an investment house whose main asset is the Pact Group. So what does the insertion of a phalanx of Kin Group employees, that effete bunch of yes-men and women and pen-pushers, know about running a real company; well the answer is somewhere between very little and nothing at all. But that of course, as the letter explains, would be the object of the exercise.
# Pact's share price is likely to fall once the offer closes#
This scenario has been postulated for some considerable time. How could it be achieved? I suppose there could be some scheme to flood the market with shares, but I'm at a loss as to how this could be done. Except, perhaps a new share issue designed to be outside the reach of small shareholders, demanding a massive injection of cash, and/or giving preference to selected institutional bodies. Would all this be legal; I suspect not.
Just as a side note, I'm getting as bit suspicious about the new facilities coming on line. Is production being held back?
Is all this bullying and intimidation encouraging me to sell my pathetic bundle of shares? Short answer is, “NO”. If you read the rational comments on this site by Williamt, U123 et al, you will see that most of this huffing and puffing will get them nowhere if we achieve a 10% plus ownership. And I suspect that with so many small holders refusing to budge there's a very good chance that we have already achieved this target but don't realise it.
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