Being a Rhodes scholar doesn't mean a whole lot unless you have common sense and act in good faith towards the best deal obtainable for the shareholders, (& in my mind the benefit to the nation).
If he is a smart strategist this entire scenario is being played out for the benefit of the banking syndicate and maybe, just maybe some alternative plan he has up his sleeve to deal with the banking refinance. After all Martarbe has been sold, there is positive cash flow from a number of operations, some significant 'by in' arrangements could be deliberately kept under wraps, a capital raising and refinance through a '"trusted" banker, (not that there are many of those around) may be sufficient to pay down the debt. Remember, there are many of the banks seeking the debt repayment who have vested interests in this company in terms of share holdings. (according to their company web site).
Having said all that, I believe Michelmore will take the 'safe' option and sell out the company for less value then what many believe it to be truly worth.
It truly is a pity these CEO's don't seek advice from the likes of Warren Buffet or some knowledgeable consultant to get out of this mess the likes of Chip Goodyear. Stay clear of Sol Trullio - there are some who have a natural understanding of their environment & evolve to work in harmony with it. In Sol's case; Australia is not another state of the USA.
Personally, I'm not in favour of the Minmetals deal, the 'difficult banks' could be payed off within a short time frame and the remaining banks dealt with as a normal debt reduction program.
OZL Price at posting:
88.0¢ Sentiment: Hold Disclosure: Held
