Twiggy Forrest ... aussie legend, page-2

If you ever wanted to get a feel for the lack of moral fibre in corporate Australia you need go no further than Fortescue Metals boss Andrew Forrest. As reported in The Australian today, Forrest has declared the overnight crystallisation of a $300 million profit for himself a “remarkably selfless corporate act”. Praise the lord!
How easy it is to grant yourself deep in the money options and then when the stock is at all time highs convert them to stock. Certainly this has been a well worn path for corporate Australia. However, to describe it as a “remarkably selfless corporate act” is one of the most outrageous things I have ever heard. That Forrest has made investors in Fortescue Metals some handy returns is not in question but to parade his gains in such a fashion is insulting.
CRIKEY: Indeed, it was a good story by Clive Mathieson in The Australian today which you should check out here. The Fin Review had the basics but missed the fact that Forrest was crystallising a $300 million gain for himself. It is worth checking out today’s various ASX announcements on the capital raising, options conversion and change in directors’ holdings here.
The Forrest disclosure is the last of the directors’ statements and the numbers are quite mind boggling.
Last week Forrest had 42 million shares in Fortescue but today he has paid $5.11 million for an additional 63.85 million shares or just 8c a pop, bringing his total stake to 103.85 million.
Mathieson suggested this dilution would send Fortescue Metals shares south today but the reverse has happened because the market is happy it has bedded down a broader $70 million funding package. The stock closed 14c stronger at $3.04 today, meaning his stake is now worth $315.7 million. This is the most valuable stake in an Australian mining stock owned by any individual.
Twiggy Forrest has long been a colourful character whose original backers lost a fortune in the Murrin Murrin nickel project before the new owners and management team helped turn the ship around as nickel prices simultaneously soared.