interesting take on consmin letter

This is courtesy of the Mining & Energy section from the Australian...

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Kiernan tells it like it is

July 12, 2007

DAILY Assay has said it before and we will say it again: Michael Kiernan is one of the straightest-shooters going around in the resources game at the moment.
The former truckie tells it like it is.

It makes for a breath of fresh air not just for journalists, but also for shareholders and analysts and anyone else who crosses the Kiernan path.

Because effectively what all those mentioned above are trying to do is exactly what he himself, as a miner, wants to do.

That is scratch around in the dirt and try to come up with something of value.

So it comes as no surprise that Kiernan would put out a letter to his "fellow" Consolidated Minerals shareholders as D Day approaches for his new vehicle, Territory Resources, to lead a consortium to put in a rival bid for ConsMin to that of Pallinghurst's.

I hope Kiernan paid someone a decent amount to draft the letter, because Daily Assay will give you what would have been his own version.

What appeared in the letter: "I would like to introduce myself (or re-introduce myself, as the case may be). My name is Michael Kiernan and I am the executive chairman of Territory Resources, an Australian resources group."

What would have appeared in the original draft: "G'day, Kiernan here. Remember me? If you don't, you can call me boss of Territory Resources. "

Letter: "Over eight years, I had the pleasure of serving shareholders as the managing director of Consolidated Minerals. After bringing ConsMin out of administration, I led the team that, together with Hong Kong's Noble Group and Austria's CDM DECOmetal, grew ConsMin into a near $1 billion company."

Original draft: "I hope you haven't forgotten that with my mates, I built what was a bastard of a company into a billion dollar company before the chairman shafted me."

Letter: "Territory has approached the ConsMin board with an alternative proposal to the Pallinghurst offer, which has been recommended by your board. I believe the Territory proposal would be superior to Pallinghurst's offer."

Original draft: "I'm back baby. I've got bigger balls than Pallinghurst and I'm going to give you more bang for your ConsMin buck with my rival offer. "

Letter: "We requested the ConsMin board allow Territory to conduct limited due diligence so that Territory could evaluate whether or not to make an alternative offer. To my surprise, the ConsMin board initially resisted providing Territory with that access. Last Thursday, they reluctantly agreed to provide due diligence access only until this Friday, 13 July."

Original draft: "Did you see how the ConsMin board wouldn't let us do due diligence? I'm sure you have got a good idea of what I want to do with them when I get my company back. They tried to put the squeeze on me by giving me only a short time to do due diligence when I (with the help of shareholders of course) forced them to let me in the door to see just what they've been up to with the accounts since I left. "

Letter: "However what I think isn't important. What is important is which alternative you think will provide you with the greatest value for your ConsMin shares. To make that decision, you need to be able to consider each proposal on its own merits. For that reason, it is imperative that the ConsMin board delays the Scheme Meeting scheduled for 19 July, at which you will be asked to decide on Pallinghurst's offer. "

Original draft: "You all know I'm the man that's going to save you. But if I'm going to lead, you are going to have to back me up. Get a hold of ConsMin and tell them, scratch that, DEMAND TO THEM, that they delay the vote on the Pallinghurst proposal which we all know (insert chuckle sound) has not a hope in hell of getting up."

Letter: "I encourage you to contact the ConsMin board and demand that the Pallinghurst Scheme Meeting be delayed, so that you can have the opportunity to assess which proposal - Territory or Pallinghurst - is superior."

Original draft: "Oi. What are you still doing. Get onto ConsMin, the number is 08 9321 3633 and get up 'em! You want more money, don't ya?"

Letter: "Yours sincerely, Michael Kiernan."

Original draft: "You know you love me, Michael Kiernan."

Just joking Michael.

email: [email protected]
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